Ezra Holdings, a contractor and provider of integrated offshore solutions to the oil and gas industry, has recorded a drop in full year net profit, but revenue rose due mainly to strong subsea services business.
Net profit in the full year, ended 31 August 2014, decreased by 16% to $45.27 million, compared to $53.65 million in the same period of last year.
The company achieved revenue growth of 18% to US$1.5 billion for the full year ended 31 August 2014 (FY14), setting another new record from the US$1.3 billion achieved in the previous corresponding period (FY13).
Revenue for the fourth quarter edged up by 6% from US$419.2 million ended 31 August 2013 (4Q13) to US$446.0 million.
Gross profit grew 34% to US$226.9 million in FY14 and gross profit margin increased from 13% in FY13 to 15% in FY14. Adjusted EBITDA for the Group grew 68% to US$176.7 million in FY14 and adjusted PAT rebounded from a loss of US$26.6 million in FY13 to a profit of US$41.2 million in FY14.
EMAS AMC, Ezra’s Subsea Services division,continues to deliver strong and sustained growth, with five recurring quarters of operational profitability. Revenue increased by 32 % to US$1.0 billion, as a result of Ezra’s strategy to improve operational efficiency and economies of scale by increasing fleet capacity and optimising deployment to undertake more projects.
EMAS AMC also secured orders valued at almost US$1.0 billion in total from the start of FY14 till date despite current slowing market sentiments, building a healthy backlog of projects up to 2016. Earlier this month, EMAS AMC announced the triple contract signing for subsea tie-back projects with Noble Energy, valued at over US$300 million. Additionally, EMAS AMC has today announced awards for multiple contract wins from various energy companies in the US Gulf of Mexico and Asia Pacific valued at over US$70 million, continuing its global winning momentum.
Lionel Lee, Ezra’s Group CEO and Managing Director, said: “We have achieved healthy revenue growth of 23% CAGR over the last three years, driven by strong performance of EMAS AMC. With Lewek Constellation turning fully operational In 1Q2015, we remain optimistic and confident that she will be helming the Group’s future, and we will be able to achieve our desired levels of economies of scale in the next three to five years by driving operational efficiency to optimise profitability.”
In addition, EMAS Offshore Limited, a consolidation of EOC Limited and EMAS Marine, has successfully dual-listed on the Mainboard of the Singapore Exchange Securities Trading Limited on 8 October 2014. With this move, Ezra has created a platform for investors to tap the Asia Pacific and European markets, and enable Ezra to focus on its Subsea Services business while continuing to participate in the growth of the Offshore Support Services business.