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EMAS Offshore Q1 profit boosted by consolidation deal

EMAS Offshore Q1 profit boosted by consolidation deal
Offshore oil and gas services provider EMAS Offshore has achieved a first quarter net profit of $148.4m, boosted by a $137.5m “bargain purchase gain” arising from the completion of a business combination deal.

EMAS Offshore, formerly known as EOC Limited, has merged with EMAS Marine and completed their business combination deal in October last year, with the first quarter results showing the reverse acquisition accounting.

Profit for the three months ended 30 November 2014 excluding the $137.5m from the business combination was $10.9m, up 5% from the profit of $10.4m recorded in the same period of 2013.

“We have transformed into one of the leading offshore services providers in the Asia Pacific region, with total assets of over $1.5bn,” commented Jon Dunstan, ceo of EMAS Offshore.

The former EOC Limited was a spin-off from Ezra Holdings and EMAS Marine was Ezra’s offshore support services division.

EMAS Offshore’s revenue during the first quarter was posted at $72.71m, down 9% year-on-year due to the return of a leased-in third party vessel and weakness in the shallow water PSV segment.

Amidst the current volatility of oil prices, the group maintains a backlog of about $1.2bn.

“We are keeping a close watch on the current oil price environment, and we are actively looking to streamline our operations to improve our bottom line,” Dunstan said.

The group noted that a prolonged decline and/or weakness in the global macroeconomic environment could result in reduced activity in the exploration, development and production of oil and natural gas.

The underlying fundamentals of the oil and gas industry, however, will continue to support offshore development and production activity. EMAS Offshore also anticipates that the long term trend for offshore activity remains intact which should drive demand for the group’s young and technologically-advanced global fleet.

EMAS Offshore was listed on the Singapore Exchange in October 2014 and it is also listed on the Oslo bourse since October 2007.

TAGS: Offshore