Ezra Zeroes in on Deepwater Subsea Segment to Pump Up Growth
Ezra Holdings has unveiled a vigorous new strategy that will ramp up growth, to fully mine the Group's assets and propel it forward into its latest expansion phase.
Ezra aims to significantly enhance its value-add across the Group by layering even more services onto the manifold offerings already provided by its young and sophisticated fleet. By doing so, it will be able to offer customers complete solutions and widen its operations in ways that go far beyond the acquisition of new assets.
The Group will also be making a major new thrust as it expands into the deepwater subsea segment. Its plans in this area include further enhancing its spectrum of services to include the installation of subsea equipment, umbilicals, risers and flowlines; subsea inspection,
maintenance and repair; well intervention, well simulation, hydraulic workover, and coil tubing services.
Ezra's Managing Director, Lionel Lee, said, "Our upcoming expansion represents the latest stage in our continuous efforts to tap new markets and opportunities that will set the Group on a robust growth path. Preparations for this exciting new expansion started as far back as two years ago with the launch of our energy services division, which has been building a solid track record in the industry.
"Ezra has chosen to focus on the deepwater subsea segment because we are convinced that it will provide both a strong and enduring revenue stream for the Group. It is the only segment in the offshore O&G sector that is projected to continue enjoying substantial growth beyond 2010. Our decision to enter deeper waters means we will be able to tap into this sustained demand.
"Globally, spending in the subsea segment is set to exceed half of the total spending in the offshore O&G sector over the next few years. The rising number of ageing wells, coupled with increased activities in the sector, is expected to drive up demand for new wells by a staggering 80% come 2012," Lee said, positive on the sector.
Ezra expects to benefit from its entry into the deepwater subsea segment as early as in 2H10, once it takes delivery of its latest fleet of subsea-capable vessels in the next 12 months. Two multi-functional support vessels (MFSVs) and a heavy lift construction vessel are already on order.
As part of its expansion initiative, the Group will also be realigning its assets so as to reap improved returns from them. The restructure, aimed at extracting maximum value from its assets, will see its energy services arm come under the new deepwater subsea division, whose operations will initially revolve around the three incoming vessels.
"We are re-positioning our resources so that we can harness the greatest synergies from them and maximise returns. Our ability to provide integrated solutions across the value chain and at the same time, benefit from the burgeoning demand for deepwater subsea services, will launch Ezra to fresh heights," Lee added.
For the nine months ended May 31, 2009 (9M FY09), Ezra's PATMI from ongoing activities rose 33% to US $43.0 million from US $32.4 million, after excluding the US $136.3 million net gain from the partial divestment of the Group's construction and production arm, EOC Limited, in the previous year. Group turnover also rose sharply, by 58% year-on-year to US $236.0 million, as all three divisions performed well.
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