Ezion JV Bags Deal to Provide Service Rigs in Central America

Singapore's Ezion Holdings announced Tuesday that its joint venture with Kim Seng Holdings has won contracts – worth a total of $298 million – to provide two service rigs through a seven year period to a national oil company in Central America.

The service rigs – scheduled to be deployed in the Bay of Campeche – are expected to be working by 1Q 2013. The joint venture will acquire and own the rigs to meet the requirements of the contracts.

The acquisitions, Ezion said in a statement, will be funded by internal sources as well as bank borrowings.

In a separate statement released Tuesday, Ezion said that its net profit for the third quarter ended Sep. 30 increased 24.2 percent from a year ago to $16.10 million.

Revenue for the quarter gained 21.1 percent year on year to $38.63 million due to chartering contribution from the deployment of an additional unit of the group's liftboats and service rigs, and also higher contribution from the offshore logistical support vessels with the start of the Queensland Curtis LNG (QCLNG) project.

Ezion added in its third quarter earnings statement that the company expects to deploy more liftboats and service rigs moving into the fourth quarter as it sees continued strong demand from the oil and gas industry.


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