Press release

Ezra’s 1Q FY12 revenue leaps by 138% on strong orderbook for subsea & offshore support services

  • EMAS AMC, Ezra’s subsea services division, on track to turn around in FY12
  • Recent subsea contract awards and ongoing commitment to fine-tune operations cements the Group’s position as a global leader in subsea construction
  • Achieves record order backlog of over US$1.6 billion, reflecting client confidence in Group’s capabilities
  • Vibrant activity in offshore segment, especially subsea development & production, will drive Ezra’s mid-term growth

SINGAPORE, 12 January 2012 - 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,  today announced revenue of US$180.5 million for its first quarter ended 30 November 2011 (1Q FY12),  a substantial increase from the US$75.9 million posted in the previous corresponding period.

Of the US$104.5 million or 138% increase in revenue, the Group’s subsea services division accounted for US$64.3 million. Another US$15.4 million came from the offshore support services division, attributable to the additional revenue contribution from five platform supply vessels and three anchor handling tug and supply vessels. The marine services division contributed US$24.8 million of the revenue increase.

For 1Q FY12, Group profit from operations stood at US$18.0 million, with an increase in administrative expenses attributable to the integration of Aker Marine Contractors AS (AMC) as well as the Group’s expansion programme. Profit before tax grew 13% to US$16.1 million as a result of contributions from associated companies, which was partially offset by an increase in financial expenses.

Mr Lionel Lee (黎才德), Ezra’s Managing Director, said: “Following the successful integration of AMC, a global subsea platform is now in place to execute the substantial backlog that we have accumulated over the last ten months. Our subsea division is on track to turnaround in FY12 as more projects are executed during the course of the year. 

Revenue contribution from the subsea division has grown rapidly and now exceeds that of the offshore support division. We remain committed to fine-tuning our global operations and margins will improve over time for the subsea division to contribute positively to the group in FY12. 

Our recent promotion of two key executives – Captain Adarash Kumar to the post of Group Chief Operating Officer and Mr Robin Kirkpatrick to the post of Chief Executive Officer at EMAS Marine – strengthens our management team and is part of the Group’s push to meet the challenges of managing a global organisation.”

The Group’s recent contract wins, including up to US$120 million worth of subsea and offshore support contracts announced separately today, reflects Ezra’s ability to secure significant projects despite competition from top-tier subsea players and the confidence that clients have in its capabilities. The Group’s current overall order backlog has exceeded a record US$1.6 billion, including the contract win from Statoil worth up to a combined NOK600 million that was announced earlier this week.

The subsea division now accounts for in excess of US$800 million or more than half of the total group backlog and this strong contribution is expected to continue on the back of robust subsea development and production spending expected in North Sea, West Africa, the Gulf of Mexico and Brazil. Ezra is well positioned to take advantage of this trend with the establishment of a strong global presence in the industry, supported by a young fleet of technologically advanced and enabling vessels, as well engineering and project management expertise. 

ABOUT THE GROUP www.emas.com
SGX mainboard listing: December 2005

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 Vietnam though HCM Logistics Limited and yard facilities in Ho Chi Minh City and Vung Tau.


FOR INVESTOR OR ANALYST ENQUIRIES

EMAS
Mr Tay Chin Kwang, +65 9877 8881
chinkwang@emas.com
or

OAKTREE ADVISERS
Ms Nora Cheng, +65 9634 7450
noracheng@oaktreeadvisers.com
FOR MEDIA ENQUIRIES

EMAS
Mr Alex Tan, +65 9841 0392     
alex.tan@emas.com

or

PELHAM BELL POTTINGER ASIA
Mr Matthew Law, +65 6333 3449
mlaw@pbp.asia