Ezra nets new deals. Lewek Constellation on track
- Business & Finance
Ezra Holdings’ Subsea Services division, EMAS AMC, has secured multiple contracts from various energy companies valued at more than US$65 million (including options).
The scope of work includes project management, engineering, and transportation and installation works for a floating production storage offloading (FPSO) vessel in Africa, as well as various engineering and offshore construction support contracts. The company said that work on the various project activities has started with offshore execution taking place in 2015 and 2016.
“Despite the current headwinds faced by the oil and gas industry, our tendering activities remain healthy,” said Lionel Lee, Ezra’s Group CEO and Managing Director.
“We sit in the value chain where it is more resilient. Since the beginning of 2015, the Group has announced contract wins totalling more than US$355 million. I am delighted that we are consistently being recognised for our track record and engineering capabilities across the development and support of offshore oilfields by our clients.”
According to the press release, Lewek Constellation, the Group’s ice-classed, DP3 multi-lay construction vessel with heavy lift capabilities, is on track to turn fully operational by March 2015. Prior to completion, the vessel has secured a backlog of nearly US$0.5 billion, and is fully committed through to the middle of 2016. The company noted that with the delivery of the Lewek Constellation, the Group has substantially completed its major capex in this growth cycle and is poised to move into a phase of free cash generation which will ultimately improve gearing and develop balance sheet strength.
The vessel has completed the installation of her multi-lay system in the Netherlands and is currently undergoing commissioning works. The Group has also closed the increased loan facility to finance the construction of the vessel up to its completion.
“We are excited to be part of this landmark project for the subsea industry, and to see the Lewek Constellation come online. The Lewek Constellation will be only one of two vessels in the world in her class, and we are proud to be associated with the project from start to finish,” said Magnus Piene, Global Head of Offshore for DNB, the colead-arranger for the loan facility for the Lewek Constellation.
“We have seen Ezra grow and transform since the early 2000s as a ship charterer to becoming a full-fledged subsea engineering services provider, and we would like to congratulate Ezra on achieving yet another milestone with the Lewek Constellation,” said Joyce Tee, Managing Director, Head of Shipping, Aviation & Transportation, Institutional Banking Group of DBS Bank, the co-lead arranger for the loan facility for the Lewek Constellation.
“I am extremely pleased with the progress we have made with the Lewek Constellation, and I would like to thank our principal banks for their commitment and strong support in seeing this project come to fruition,” said Lee.
The Group has secured a healthy backlog of approximately US$2.5 billion, with a majority of the contracts expected to be executed over the next 12 to 18 months.