Ezra sinks deeper into the red for Q3, hit by industry downturn and one-off loss

OIL and gas-related Ezra Holdings has sunk deeper into the red for its fiscal third quarter ended March 31, 2016, reporting a staggering net loss of US$242.9 million compared to US$3 million a year ago.

Revenue for the quarter dropped 10 per cent to US$125.7 million, from US$139.3 million a year ago.

For the quarter, gross profit deteriorated from US$23.2 million in Q3 FY2015 to gross loss of US$0.6 million in Q3 FY2016 due mainly to its offshore support and production services division.

During the quarter, Ezra also booked a non-cash loss of US$181.3 million that is one-off in nature and allowance for doubtful debt of US$25 million, contributing to post-tax loss from continuing operations of US$239.2 million. This compared with a profit of US$0.05 million a year ago.

After adjusting for non-cash items, operating profit before working capital changes came in at US$13.1 million for Q3 FY2016.

Looking ahead, Ezra said that its financial performance over the next 12 months is expected to remain challenging as pressure on charter rates and decreased utilisation continue to weigh on operations for the offshore support and production services division.