Published April 9, 2009

Ezra Holdings Q2 profits up 21%

For H1 though, earnings are down 84% due to a lack of exceptional gains

By VINCENT WEE

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OFFSHORE support and marine services provider Ezra Holdings saw second quarter net profit rise 21 per cent to US$14.9 million - from US$12.4 million for the previous corresponding period - on a steady 30 per cent increase in revenue to US$63.0 million.

For the first half to Feb 28 though, net earnings plunged 84 per cent to US$24.2 million from US$151.3 million in H108, the reason being that the comparative period included an exceptional net gain of US$136.3 million from the partial divestment of Ezra's production and construction arm EOC. Excluding exceptional items, H1 net profit rose 61 per cent to US$24.2 million from US$15 million.

First half revenue rose 87 per cent to US$176.1 million on greater recognition of revenue from offshore support services as more vessels entered service. Turnover from this division rose by US$17.0 million with the full six-month contribution from two anchor handling tugs (AHT) and three anchor handling, towing and supply vessels (AHTS), as well as four months of operation of the AHTS Lewek Plover.

Revenue from the marine services division rose by US$22.4 million mainly due to an increase in procurement and equipment supply and engineering activities in Vietnam as Ezra moved more yard work to the lower cost country. The new energy services division also added a healthy US$46.3 million to revenue.

Separately, Ezra also yesterday announced new and renewal contracts from various parties for operations in South-east Asia for three AHTS vessels for charter periods of two years worth US$47 million while its 48.9 per cent-owned unit EOC said the Lewek Chancellor accommodation crane barge had secured a six-month contract extension after she completes her current contract in end April 2009. The latest contract, which will see it continue its current job till October, is worth up to US$8.8 million including the extension option.

For the six months under review, trade receivables rose to US$132.6 million from US$87 million. Net cash from operating activities plunged to US$259,000 from US$6.9 million. Finance director Ta Chin Kwang explained that this was due to the changing nature of the group's business where an increasing proportion of revenue is coming from the marine services and energy services divisions where revenue is more lumpy.

Ezra shares closed 2.5 cents lower at 79.5 cents yesterday.