Offshore contractor Ezra Holdings sank into the red with a net loss of US$249.9 million (S$339.3 million) in the second quarter, from a net profit of US$138,000 in the same period a year earlier.
The deficit for the three months to Feb 29 includes net losses from continuing operations of US$220.1 million, and from discontinued operations of US$29.8 million.
"Due to depressed market conditions, the group has recognised impairments, as well as write-offs of bad debts, net of US$18.9 million, and allowance for doubtful debts, net of US$48.6 million. These adjustments, which are non-cash in nature, have impacted the group's financials," Ezra said.
Revenue slipped 14 per cent to US$111.2 million for the second quarter due to lower contributions from its offshore support and production services division and energy services division. For the half year, net losses reversed to US$305.3 million from a net profit of US$54.6 million, while revenue dipped 2 per cent to US$263.4 million.
Loss per share was 2.26 US cents for the quarter, from 1.43 US cents in the same period a year ago. Net asset value per share stood at 35.53 US cents as at Feb 29, down from 46.46 US cents as at Aug 31 last year.
AT A GLANCE
US$111.2 million (- 14 per cent)
US$249.9 million (from net profit of US$138,000)
Mr Lionel Lee, Ezra's group chief executive and managing director, said: "Our performance for the quarter has largely been impeded by lower charter rates and decreased vessel utilisation sustained by our offshore support and production services division, and this trend is expected to (continue) in the ensuing months. The second half of the year will continue to be a challenging period for the group, as we witness reduced oil and gas spending across the globe and ongoing uncertainty in new contract awards."
But since the Emas Chiyoda subsea joint venture began operations earlier this month, Mr Lee said the group is in a better position to secure larger contracts with a strong partner. Chiyoda Corp completed its 50 per cent acquisition of Emas AMC, Ezra's subsea business unit, which called for the Japanese outfit to pay out US$150 million in cash to Ezra and inject US$30 million into the joint venture.
Ezra shares closed 1.9 per cent or 0.2 cent lower at 10.4 cents yesterday, with 74.6 million shares traded.