Ezra Lifts Profits
Ezra, has reported an increase in profit after tax (PAT) from US$8.7 million in 1Q14 to US$60.6 million in 1Q15. However, revenue of US$321.0 million for the first quarter ended November 30, 2014 (1Q15) was slightly lower from the corresponding period (1Q14).
Adjusted EBITDA for the Group increased 13% from 1Q14 to reach US$44.7 million, while adjusted PAT decreased 40% from the corresponding period to reach US$5.2 million in 1Q15. In the same period, gross profit margin declined by 3% in 1Q15, owing to lower gross profit margin contributions from the Subsea Services division and the Offshore Support and Production Services division.
EMAS AMC, Ezra’s Subsea Services division, experienced a decrease in revenue for 1Q15. This was due to the lower revenue contributions from the vessel Lewek Express which has been in planned mandatory dry dock for 1Q15 and the urgent maintenance and repair of Lewek Champion due to the gangway malfunctioning while the vessel was on a project during the quarter, causing the vessel to be out of operations since October 2014. However, Lewek Constellation, Ezra’s flagship subsea construction vessel, is expected to be fully operational by March 2015 and will beging on her projects thereafter.
The Group’s Offshore Support and Production Services division, through EMAS Offshore Limited, saw 1Q15 revenues decrease by US$18.7 million as a result of one leased-in vessel being returned to owner in the second half of FY14 and weakness in the Platform Support Vessels (PSV) segment.
Lionel Lee, Ezra’s Group CEO and Managing Director, said: “I am pleased that the Group has maintained operational profitability, in particular, our offshore support segment enjoyed a healthy utilisation rate at more than 80%, despite the last quarter being the winter and monsoon season.”
“The recent decline in oil prices has affected the global capital markets, but we believe that the long-term fundamentals of the oil and gas industry remain encouraging and that this is expected to drive the continued spending in segments that Ezra operates in,” commented Lee.
“Despite the current headwinds faced by the oil and gas industry in the midst of a lower oil price environment, we are not seeing a slowdown in tendering activities, especially in the Gulf of Mexico and West Africa. By March 2015, we will see the delivery of our flagship vessel, Lewek Constellation, an ice-classed vessel that is one of only two in the world. This will strengthen our credentials, especially in the areas of subsea tie-backs and SURF,” said Lee.
Additionally, the Group announced that EMAS AMC had won a project with Apache to deploy the Lewek Constellationfor work in Australia, worth some US$105million.
The Group has secured a backlog of approximately US$2.5 billion, with majority of the contracts expected to be executed over the next 12 to 18 months. Moving forward, the Group will continue to focus on execution and delivery of subsea projects.