Singapore-listed, Ezra Holdings, just barely managed to stay afloat as the offshore O&G contractor books a 96 per cent decrease in profit after tax on lower revenue and higher costs.
For the third quarter of 2015 (3Q2015) ending May 31, Ezra recorded $400,000 in profit after tax, down from $$10.2 million a year earlier.
To remind, Ezra’s second quarter 2015 (2Q2015) profit after tax (PAT) also fell 79% from $22.1 million to $4.7 million year-over-year.
Revenue dropped 3 per cent during the quarter to $390.7 million, compared to $402.1 million in the corresponding period of 2014.
Ezra’s subsea division EMAS AMC saw its revenue decrease by $21.0 million in 3Q2015 compared to 3Q2014, mainly due to projects being in earlier phases of execution.
However , Lionel Lee , Ezra’s CEO and managing director, believes that in the long run market conditions will advance: “Despite recent market challenges, Ezra has managed to maintain its revenue this quarter. We acknowledge that market conditions remain difficult, but we see that the longer-term prospects in the industry are showing gradual improvement. The Group is currently working to rationalize non-core assets to accelerate the deleveraging of and strengthening the Group’s balance sheet.”