Singapore-listed Ezra Holdings’ third quarter profit has fallen from a year ago.
The offshore services provider reported a profit of USD392,000 in the third quarter, down 96% from a year ago.
The decrease was due to lower gross profit of USD45.57 million in the quarter, as compared with USD65.38 million a year ago.
However, the lower gross profit was offset by the lower administrative expense of USD39.5 million, down 13% from the same period in 2014.
Similarly, Ezra’s revenue dipped 3% to USD390.73 million in the third quarter from USD402.1 million a year ago.
The decline in earnings was due to a drop in revenue from Ezra’s subsea services division (USD21 million) and offshore support and production services division (USD16.1 million).
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However, the decrease is partially offset by a USD25.7 million revenue increase from Ezra’s marine services division.
Ezra’s operating cash flow, on the other hand, improved significantly in the third quarter as a result of stronger cost management across the group and its subsidiaries.
The company’s operating cash flow increased 366% from the same period in 2014 to USD77.4 million, while its quarter-on-quarter increase was 33%.
Ezra expects better cyclical performance in the second half of 2015 because of the delivery of Ezra’s flagship subsea construction vessel Lewek Constellation in May 2015.
Currently, Ezra has backlog of USD2 billion, including a backlog of USD415 million from its two floating production storage and offloading vessels (FPSO), namely Lewek EMAS and Perisai Kamelia, that the company’s offshore and production services division, EMAS Offshore, has stakes in.