Ezra to invest US$130m in fleet expansion

Positive outlook for offshore O&G sector prompts the company to fortify its key offshore support, deepwater subsea and engineering services units for further growth.

Ezra Holdings Limited (Ezra), a leading integrated support and marine services provider in the offshore oil & gas (O&G) sector, will add four high-end multi-purpose platform supply vessels (PSVs) to its fleet in the light of the positive outlook for the sector. The investment of approximately US$130 million underlines its commitment to strengthening the capabilities of its core businesses and driving its next growth phase.

At the same time, the Group has also announced that EMAS Offshore Pte Ltd, the Group’s operating entity for offshore support services, has secured letters of intent and/or letters of award for approximately US$51 million worth of new contracts which will charter five anchor, handling, towing and supply (AHTS) vessels and a PSV to oil majors, national as well as independent oil companies, for operations in Asia and Australia. In aggregate, the average period for the new charters will exceed two years.

Mr Lionel Lee, Ezra’s Managing Director, said: “We are currently fortifying our key offshore support, deepwater subsea and engineering services units in preparation for our next leg of growth, which will see Ezra becoming a truly global player in the offshore O&G sector, according to an Ezra report.

The offshore support services division brings in steady cashflow and remains integral to the Group’s overall operations. The latest contracts will keep the overall fleet utilisation high, reflecting the underlying positive tone of the industry. As we grow our fleet, we expect to enjoy rising recurrent income from the charters of our young and technologically advanced vessels.”

The US$130 million will fund the purchase of four multi-purpose PSVs of up to 5,200 deadweight tonnes over the next two years. These vessels will meet the latest code of safety and oil recovery guidelines.

The Group recently announced the strategic purchase of a well-equipped US fabrication facility in Houston, Texas, which is expected to anchor its position as a global O&G engineering services provider. This comes shortly after the announcement of Ezra’s proposed US$250 million acquisition of Aker Marine Contractors, an established SURF and floater installation company, which is poised to help the Group join the ranks of the world’s top players in the subsea services sector.