Liftboat and accommodation jack-up rig operator Ezion Holdings yesterday reported a 31.5 per cent fall in net profit to US$19.8 million (S$26.6 million) for the second quarter ended June 30, from US$29 million in the year-ago quarter.
Revenue declined 7 per cent to US$83.7 million from US$90.1 million a year ago due to several service rigs undergoing modifications and routine class surveys.
Ezion saw a net other-income gain of US$15.3 million in the quarter, mainly from a gain on the disposal of assets held for sale, compared with US$962,000 a year ago.
But the cost of sales and servicing rose by 12.4 per cent or US$7.3 million to US$65.9 million due to the deployment of additional service rigs.
AT A GLANCE
REVENUE: US$83.7 million (-7%)
NET PROFIT: US$19.8 million (-31.5%)
Earnings per share slipped to 1.12 US cents from 1.6 US cents previously, while net asset value per share firmed to 80.72 US cents compared with 78.68 US cents as at Dec 31.
Looking ahead, Ezion warns it expects strong headwinds to continue in the second half of the year.
"The industrial environment remains very challenging in view of the low fossil fuel prices and the cut back in expenses from oil majors," it said.
It also said that the gross proceeds of $138.8 million just raised in a rights issue will place it in a better position to focus on supporting clients "that are relooking at some of the extraction and production activities".
It added that management is also working hard to complete the repairs and modifications of several of its service rigs to ensure they could return to work before the end of the year.
Ezion shares closed unchanged at 29 cents yesterday.