Offshore oil and gas contractor, Ezra Holdings, has seen red in the first quarter, ended November 30, 2015 (1Q2016), as the oil and gas downturn continues to impact activities in the global offshore marine and subsea industry.
The Singapore-listed company recorded net loss of $53.7 million, on revenue of $152.3 million, versus net income of $60.5 million, on lower revenue of $128.1 million in the year-ago quarter.
Recorded increase in revenue is mainly contributed to Ezra’s marine services division, Triyards, with $45.4 million revenue boost compared to the year-ago period. Nevertheless, weak market has chopped revenues of its offshore support and production services division, leaving EMAS Offshore with a drop of some $19.3 million against the revenues in the corresponding period last year.
Furthermore, gross profit margin for the Group fell 12 percent year-over-year and gross profit for the period declined to $15.7 million.
“The volatility of the oil price and the depressed state of the oil and gas industry has led to reduced activity and uncertainty in new contract awards,” says Lionel Lee, Ezra’s Group CEO and managing director.
Ezra said it expects its offshore support and production services division to experience lower charter rates and decreased vessel utilisation in 2016, but also that it believes its marine services division will continue to deliver good financial growth to the Group.
“FY2016 will be a tough year for the Group. As we strive to work amidst the extremely challenging operating conditions, the Group will focus on improving vessel utilisation,” Lee added.
In addition, the transaction for the EMAS Chiyoda Subsea joint venture is expected to be completed in the first quarter of calendar year 2016, Ezra said in its earnings report.