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Ezion full year profit slashed by Q4 loss

Ezion full year profit slashed by Q4 loss
Offshore services provider Ezion Holdings saw its profit slashed in 2015 compared to the previous year mainly due to significant writedowns on assets and a loss in the fourth quarter.

Net profit for the full year 2015 was recorded at $36.78m, plunging 83.6% to $223.66m, in line with earlier expectations of poorer results.

The full year result was dragged down by the loss of $63.52m in the fourth quarter, due mainly to impairment losses on plant and equipment and provide for trade receivables amounting to around $81.1m.

Ezion explained that the impairment charges came against the backdrop of the difficult operating environment caused by the collapse of fossil fuel prices, negatively affected the industry and the group’s plan to redeploy some of the existing assets for different usages and different areas of operations.

The last quarter of 2015 also saw Ezion recorded a deficit of $3m on share of results of associates and jointly controlled entities, compared to a gain of $8.16m in the same period of 2014.

Revenue for last year was reported at $351.15m, down 9.1% year-on-year dye primarily to the absence of contribution from the projects in Queensland, Australia that did not go into additional trains as originally planned.

“The market condition for financial year 2016 is expected to be continuously very challenging without a recovery of the fuel prices but the management will continue to work very hard to adapt the group to the difficult environment so as to be able to take advantage when the market recovers,” Ezion said.