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Ezion posts 36% drop in Q2 profit
OIL and gas support services provider Ezion Holdings on Friday reported a 36.3 per cent slide in net profit to US$28.96 million for the second quarter ended June 30, weighed down by lower revenue and higher cost of sales and servicing.
Revenue fell 2.8 per cent to US$90.05 million due to the absence of contributions from the marine and offshore logistics support services division.
Earnings per share worked out to 1.83 US cents, down from 2.98 US cents previously.
For the six month period, profit came to US$69.97 million, down about 23 per cent year on year, while revenue slid 3.7 per cent to US$180.17 million.
Ezion said that the operating environment in the oil and gas sector has been challenging since the beginning of 2015, with oil majors expected to continue to curb spending on exploration and focus on extraction and production-related activities instead.
"As the group's key assets are designed mainly to provide offshore production support, it will be working closely with clients to meet this new focus," it added.