Subsea Services division demonstrates sustained operational profitability since the fourth quarter of FY13. Weaker than expected performance by Offshore Support Services division. Adjusted EBITDA for 1H14 increased 13% year-on-year. Flagship subsea construction vessel Lewek Constellation on track for full operational delivery in 2015
Ezra Holdings Limited (“Ezra” or “the Group”), a leading contractor and provider of integrated offshore solutions to the oil and gas (“O&G”) industry, maintained its operational progress, led by the Group’s Subsea Services division, EMAS AMC. Revenue for the Group in the six months ended 28 February 2014 (“1H14”) grew 22% to US$640.3 million compared to the corresponding period (“1H13”). For the three months ended 28 February 2014 (“2Q14”), revenue for the Group also grew 22% to US$300.4 million compared to the corresponding period (“2Q13”).
Adjusted EBITDA for the Group improved to US$79.0 million in 1H14 from US$69.9 million in 1H13. Adjusted profit after tax in 1H14 doubled to US$14.3 million compared to 1H13.
EMAS AMC continues to be the key driver to the revenue growth of the Group, posting an increase in revenue of US$118.7 million in 1H14 and US$59.3million in 2Q14. This increase in revenue was driven by the increased fleet capacity following the delivery of two subsea pipelay construction vessels, Lewek Express and Lewek Centurion, in the fourth quarter of financial year ended 31 August 2013 and the increase in value and number of projects undertaken in the period.
The Group’s revenue increase was partially offset by a decrease of US$7.0 million for 1H14 and US$6.2 million for 2Q14, from the Offshore Support Services division, EMAS Marine. Gross profit margin for the division was also weaker. This was due to the increase in operating costs, which was a result of higher than expected maintenance costs. In addition, the AHT segment saw weaker utilisation during the quarter. The decrease was partially offset by the revenue contributions from two Platform Supply Vessels delivered post-2Q13, Lewek Avior and Lewek Alkaid.
To read the full press release, please visit EMAS AMC here.