Ezra Reviews Orderbook for 5 Newbuild Vessels

Ezra Holdings Limited, a leading integrated offshore support and marine services provider in the offshore oil & gas (O&G) industry, is proactively reviewing its orderbook of five multi-functional support vessels (MFSVs) in view of the uncertainty arising from the current financial crisis.

The first of its 30,000 brake horsepower (bhp) MFSV options to come under review is Ezra’s most recent order with Keppel Singmarine Pte Ltd. The newbuild contract, valued at S$69 million, excluding the cost of certain owner-furnished equipment, was placed in May with delivery expected in 2010.

Said Ezra’s Managing Director, Lionel Lee: "Just as we have always exercised caution in the past, we are taking a prudent approach by revisiting our capital expenditure plans and exploring our options, even though relevant financing for this vessel has been secured. We are positive about our medium-term prospects as enquiries for offshore support vessel charters remain firm."

The Group will continue to strengthen its financial position, and will focus on consolidating our integrated solutions approach to become Asia’s leading offshore support services supplier to the oil & gas sector.

Just last month, the Group reported a net attributable profit of US$175.4 million for the full year ended 30 August 2008 (FY08), a jump of 157% year-on-year, thanks to an 87% improvement in revenue to US$268.3 million. The Group’s interest cover doubled to 29 times because of strong contributions from its core offshore support and marine services divisions. It kicked off its current FY09 financial year with a net gearing of less than 12%.