EMAS Offshore Q2 profit surges on divestment, forex gains

EMAS Offshore Limited reported net profit of US$9.7 million in the second quarter ended Feb 28, 2015, from US$4 million in the same quarter last year, thanks to foreign exchange gains and gain on disposal of an anchor handling tug (AHT).

But revenue posted by the offshore marine company fell 10 per cent year on year to US$60.9 million due to weakness in both the shallow water anchor handling, towing and supply vessels (AHTS) and shallow water platform support vessels (PSV) segments.

While revenues and utilisation rates have declined due to market conditions, the group realised cost benefits and operational efficiencies from the business combination, said EMAS Offshore chief executive Jon Dunstan.

EMAS Offshore was formed after Ezra Holdings injected its offshore support services division, EMAS Marine, into its Norwegian associate company EOC as part of a restructuring. EMAS Offshore got a secondary listing on the Singapore Exchange (SGX) late last year.

Mr Dunstan said: "Under the current circumstance we are taking a more cautious view for the ensuing quarters. However, we have taken steps to maintain our operational performance, which include exercising and implementing ongoing cost-optimisation initiatives, and focusing on operational excellence. These strategies will serve to protect our bottom line."