Ezion’s net profit plunges 36.3% to $40.6m in Q2

Blame it on cancelled projects in Australia.

Ezion’s net profit dropped by 36.3% to $40.6m (US$29m) in the second quarter, on back of higher finance costs and a number of cancelled projects in Queensland, Australia.

The group’s marine and offshore logistics support services segment did not contribute to its topline this quarter, as the projects in Queensland did not go into additional trains as originally planned.

Ezion also grappled with higher finance costs due to additional interest expense for the funding of newly delivered service rigs.

“The operating environment in the Oil and Gas sector has remained challenging since the beginning of the year. The Group expects Oil Majors will continue to reduce capital expenditure on exploration and development and focus on extraction and production related activities,” Ezion said.

“The Group is putting in additional resources and effort to ensure the Service Rigs that were not able to generate revenue in 1H15 due to repair and maintenance, dry docking inspection and additional modification work, so that they could be deployed as soon as possible in the second half of 2015. Additional Service Rigs will also be deployed in 2H15,” Ezion added.