Ezion's Q2 net profit falls 31.5%, expects challenging conditions to continue into H2

EZION Holdings reported on Thursday that its net profit for the second quarter ended June 30, 2016 fell 31.5 per cent to US$19.8 million, compared to about US$29 million a year ago.

This was despite a net other income gain of US$15.3 million in Q2 2016 mainly from a gain on disposal of assets held for sale, compared to US$962,000 a year ago.

Revenue was down 7 per cent at US$83.7 million from US$90.1 million as a few service rigs had undergone modifications and routine class surveys.

The group expects strong headwinds to continue into the second half of the year.

"The industrial environment remains very challenging in view of the low fossil fuel prices and the cut back in expenses from oil majors,'' it warned.

Ezion said its management was also working hard to complete the repairs and modifications of several of its service rigs so that they would be able to return to work before the end of the year.