Press release

Ezra reports record revenue of US$165m for 3Q FY11

Ezra Holdings Limited (Ezra, the Group or 以斯拉控股), a leading global offshore contractor and provider of integrated offshore solutions to the oil and gas (O&G) industry, achieved record quarterly revenue of US$164.8 million for the third quarter ended 31 May 2011 (3Q FY11).
Revenue increased 51% to US$164.8 million in 3Q FY11 from US$108.8 million in 3Q FY10. Revenue for the nine-month period ending 31 May 2011 (9M FY11) was US$339.6 million, up 39% from US$244.3 million in the previous corresponding period. This was due mainly to maiden revenue contribution from the newly acquired Aker Marine Contractors Group (AMC); the added revenue from the Offshore Support Services Division with the addition of five platform supply vessels and four anchor handling tug & supply vessels to the fleet; and the increase in procurement and equipment supply and engineering work for the Marine Services Division.

The Group’s gross profit increased by 15% to US$81.8 million for 9M FY11 from US$71.3 million in 9M FY10. However, gross margins and gross profits for the Group declined during this initial phase of execution for EMAS AMC (the subsea services division of the Group); gross profit for 3Q FY11 was US$27.8 million, a decrease of 16% from US$33.2 million in 3Q FY10.

The Group also recorded a net profit of US$6.6 million for 3Q FY11, against US$26.3 million for the previous corresponding quarter. This decrease was largely because of costs from the integration of AMC, higher overheads as well as higher financial expenses in respect of the Group’s expansion programme.

Mr Lionel Lee (黎才德), Ezra’s Managing Director, said: “Our latest performance reflects our ongoing efforts to build up the Group’s core growth engines. We are eagerly looking forward to the future as AMC moves towards becoming fully integrated. With AMC, we will be in a strong position to further extend our reach in the deepwater development and production sector, which is growing sharply, especially in the Asia-Pacific region. We believe AMC’s capabilities and track record, together with Ezra’s expanding fleet of subsea-construction vessels, will allow us to build up our orderbook and reach our US$1 billion target for the segment.”

Today, Ezra also announced Letters of Awards for three new projects worth in aggregate approximately US$85 million to carry out subsea services across the Asia-Pacific region. One of the projects is expected to commence as early as August 2011. (For further details, please see our separate press release, also dated 14 July 2011, on the latest wins.)

ABOUT THE GROUP

EMAS – a leading global offshore contractor providing construction, marine, production and well intervention services – is the operating brand for Ezra Holdings Limited (以斯拉控股). Adept in delivering best-value solutions, EMAS has entrenched itself as a powerful adjunct in the oil and gas (O&G) industry by combining its customised approach with a diverse offering of assets and services designed to fully meet clients’ needs. It operates globally with offices in 16 locations across five continents spanning Africa, the Americas, the Asia-Pacific and Europe.
Having completed the acquisition of Aker Marine Contractors AS in 2011, the Group has added one of the world’s leading SURF (subsea umbilicals, risers & flowlines) and floater installation providers to its fold. Ezra, through EMAS, operates four main business segments that together have the ability to execute a full spectrum of seabed-to-surface engineering, construction, marine and production services throughout the world.
Amplifying the broad assets and services offered by EMAS, the technical strength and service record at EMAS AMC will allow the Group to provide comprehensive offshore seabed-to-surface construction services to the O&G industry globally. The service offerings include subsea construction, IMR (inspection, maintenance & repair), floater and FPSO (floating, production, storage & offloading) installation, SURF installation, pipelay & heavylift, floatover installation and decommissioning.

EMAS Energy provides well intervention and drilling services both onshore and offshore, offering fully integrated solutions that combine its marine assets with cutting-edge intervention equipment and services. The range includes workover, drilling, fluid pumping, nitrogen and pipeline & process services.

EMAS Marine manages and operates a young and diverse fleet of anchor handling, towing & supply vessels, anchor handling tugs, platform supply vessels and fast crew utility boats. These vessels support the O&G industry in a wide range of offshore operations throughout the oilfield life cycle.
EMAS Production, under approximately 46.5%-owned EOC Limited, owns and operates FPSO facilities, offering services such as FPSO conversion management and the operation & maintenance of production facilities. It has the capability and track record to design and provide FPSO/FSO mooring & riser systems and turrets, and fluid transfer systems. In addition, the Group offers fabrication, engineering, logistics and support services out of Norway, US and Vietnam.

FOR INVESTOR OR ANALYST ENQUIRIES
MR TAY CHIN KWANG
EMAS
+65 9877 8881
chinkwang@emas.com

MS NORA CHENG
OAKTREE ADVISERS
+65 9634 7450
noracheng@oaktreeadvisers.com

FOR MEDIA ENQUIRIES
MR ALEX TAN
EMAS
+65 9841 0392
alex.tan@emas.com

MS CAROL CHONG
OAKTREE ADVISERS
+65 9475 3167
carolchong@oaktreeadvisers.co