Ezra

Ezra: 4QFY14 net profit grew 10% y/y to US$11m, on revenue improvement of 6% to US$446m, buoyed by its subsea services segment, but partially offset by a decrease in sale from marine services and offshore support services segments. Gross margin fell 4 ppts to 14% mainly due to weakness in the AHT and PSV segments. Meanwhile, bottom line shored up by the absence of an impairment loss (US$2m) and disposal loss (US$1.2m), as well as lower admin expenses (-17%). Order backlog of US$2.4b, with the majority to be executed over the next 12-18 months. No dividends declared (FY13: 0.5¢/share). Separately, Ezra's subsea services segment was awarded an aggregate US$70m worth of contracts from a variety of national oil companies, oil majors and contractors. The scope of work includes subsea installation of umbilicals, flowlines and jumpers, as well as provision of services to support rigs. Work has commenced for several projects, with the others slated for offshore execution from 4Q14 to 2Q15.