EMAS Offshore profit jumps more than 10 times in Q1 to US$148 million

Mainboard-listed EMAS Offshore reported on Thursday a more than 10 times jump in net profit to US$148.4 million (S$198.55 million) for the its 2015 financial first quarter ended November 30, 2014, compared to US$13.0 million for the year-ago period.

The company was formed after offshore and marine firm Ezra Holdings injected its offshore support services division, EMAS Marine, into its Norwegian associate company EOC as part of a restructuring

EMAS Offshore said its earnings were boosted by a US$137.5 million bargain purchase gain arising from the completion of the business combination of EOC and Emas Marine on October 3, and also as a result of reverse acquisition accounting.

The company said net profit excluding the US$137.5 million arising from the business combination was also higher at US$10.9 million, a 5 per cent year-on-year increase from the same period a year ago, demonstrating sustained operational performance.

However revenue for the quarter fell 9 per cent to US$72.7 million, due mainly to the return of a leased-in third party vessel to its owner in the second half of FY2014 and the weakness in the shallow water platform support vessels segment.

Said EMAS Offshore chief executive officer Jon Dunstan: "We are keeping a close watch on the current oil price environment, and are actively looking to streamline our operations to improve our bottom line. In the year ahead, we will focus on building our backlog of contracts that will provide us with good visibility, and also ensure greater operational efficiency and financial discipline to drive performance."

Earnings per share for the quarter stood at 0.38 cents, while net asset value per share was US$1.15.