Offshore oil and gas contractor, Ezra Holdings, has posted a loss for the third quarter ended May 31, 2016, as it books one-off non-cash charge of $181.3 million and sees a continued decline in its offshore support and production services division.
The Singapore-based company generated a quarterly loss of $242.9 million against $3 million profit same time last year. The bottom line was hit by the already mentioned $181.3 million non-cash loss and allowance for doubtful debt of $25 million.
Ezra has also seen red in the previous two quarters which resulted in approximately $548 million loss attributable to the owners of the company for the 9 months in 2016, compared with a profit of some $89 million in the corresponding period in 2015.
The Group’s Q3 2016 revenue dropped by 10 percent to $125.7 million. Year-to-date revenue decreased by 2 percent ($389.2 million), when compared with nine months ended May 31, 2015.
According to Ezra, the decrease was cased by lower activity levels at its Offshore Support and Production Services Division and Energy Services Division.
The company added that it expects a challenging financial performance over the next 12 months as pressure on charter rates and decreased utilisation continue to weigh on operations of its above mentioned divisions.
Subsea World News Staff