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Ezion sees H1 profit halved, expects strong headwinds in H2

Ezion sees H1 profit halved, expects strong headwinds in H2
Offshore services firm Ezion Holdings saw its first half profit chopped on lower revenue as the weak offshore market continues to present very difficult operating conditions for operators.

For the six months ended 30 June 2016, Singapore-listed Ezion registered a profit of $35.33m, a big drop of 49.5% from $69.97m in the same period of last year.

The group’s first half revenue fell by 8% year-on-year to $165.8m due primarily to the absence of contribution from projects in Queensland, Australia, and a few service rigs that underwent modifications and routine class surveys.

“The management is working hard to complete the repairs and modifications of several of its service rigs to ensure they could return to work before the end of the year,” Ezion stated.

The company pointed out that on 5 August, it completed the rights issue of 478,576,422 new ordinary shares and raised approximately SGD138.8m ($103.3m) in gross proceeds. “This will place the group in a better position to focus on supporting the clients that are relooking at some of the extraction and production activities,” Ezion said.

“The industrial environment remains very challenging in view of the low fossil fuel prices and the cut back in expenses from oil majors. The group expects strong headwinds to continue into the second half of the year.”