Singapore: Ezra Raises USD 96 mln through Share Placement

Singapore: Ezra Raises USD 96 mln through Share Placement

Ezra Holdings Limited , a leading global offshore contractor and provider of integrated offshore solutions to the oil and gas (O&G) industry, took decisive steps to fortify its balance sheet in anticipation for increased subsea demand.

Ezra successfully placed out 110 million new shares at S$1.10 each, representing a discount of approximately 8.4% to the volume weighted average price of S$1.2007 on the last full market trading day up to the launch of the issue. The gross proceeds of S$121 million (USD 95.9 million) from this issue will immediately bolster Ezra’s balance sheet as it continues to execute its growing order backlog.

Mr Lionel Lee, Ezra’s Managing Director, said: “Our subsea services arm, EMAS AMC, has rapidly grown its order book to US$1 billion ahead of our 12-18 month target timeframe and the order momentum is likely to continue. The  industry is now facing a capacity issue as many subsea contractors have full schedules for the next 2-3 years. The funds we have just raised will strengthen our position to seize the many opportunities we see in the offshore oil and gas sector. Our global tender book currently stands at approximately US$4 billion and we are confident of winning a significant portion of these projects.

 “Over the medium term, we expect our earnings to be driven largely by EMAS AMC and our offshore support division, EMAS Marine.”

The Group’s recently announced subsea contract awards from Statoil and Apache Energy Limited reflects the confidence that clients have in its capabilities. The contracts are for SURF installation and subsea construction work in the North Sea and Northwest Australia respectively, with a total contract value of approximately US$155 million (including potential add-on options).

Source: Ezra Holdings Limited, March 12, 2012