Ezra's Revenue Increases 22% in 2Q FY2014 to $300M

Ezra Holdings Limited, a Singapore-listed contractor and provider of integrated offshore solutions to the oil and gas industry, posted a 22 percent increase in revenue for the second quarter of financial year 2014 (2Q FY2014) that ended Feb. 28 to $300.4 million, compared to $247.1 million a year ago, lifted by contribution from its subsea division EMAS AMC, the firm said Friday.

EMC AMC remains a key driver in growing the company's revenue, contributing $59.3 million or nearly 24 percent of the revenue during this period. The higher revenue contribution was attributed to greater fleet activity following delivery of two subsea pipelay construction vessels - Lewek Express and Lewek Centurion - in 4Q FY2013 and the increase in value and number of projects undertaken in this period.

However, Ezra's Offshore Support Services division reported a $6.2 million decline in revenue. The division's gross profit margin dipped due to increased operating costs arising from higher than expected maintenance costs and lower utilization of the anchor handling tug (AHT) vessels. This was offset by revenue contributions from two new platform supply vessels - Lewek Avior and Lewek Alkaid - that were delivered post 2Q FY2013.

Ezra also reported that the 2Q FY2014 revenue generated by Triyard - its marine services division - was comparable to last year although the company did not provide any details.

The company's adjusted profit after tax, excluding its share of gain from disposal of assets held for sale and disposal of fixed assets, was $5.5 million in 2Q FY2014, compared to $3.0 million in the corresponding period last year.

Meanwhile, Lewek Constellation, the firm's flagship subsea construction vessel, is now in China for installation of a 3,000 MT (metric ton) Huisman crane and will head to West Africa for her first project in the next quarter. Full delivery of the vessel is on track for 2015, with the vessel having just received a letter of award from Noble Energy to work on the Gunflint Project in the Gulf of Mexico next year.

“We expect to see further earnings growth in 2014 and an increase in our profitability as we leverage economies of scale. We look forward to realizing the full financial contribution of Lewek Express and Lewek Centurion. Lewek Constellation is a game-changing vessel and we believe this vessel will further drive growth and profitability in the future,” Ezra Group CEO and Managing Director Lionel Lee said in a press release.

The company's orderbook currently stands at over $2.0 billion, with a majority of the contracts expected to be executed over the next 12 to 18 months.



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