Ezion’s net profit slips 62.2% to US$15.5m in Q1

Due to fewer projects, higher costs.

Ezion Holdings reported that its net profit for the first quarter was more than halved to US$15.5 million, while its earnings slipped 8.9% to US$82.1 million.

The drop in revenue was mainly on back of the absence of contributions from projects in Queensland, Australis, which did not go into additional trains as orginally planned.

The group's bottomline was also impacted by higher cost of sales and servicing, which rose 26.3% to US$12.8 million due to the deployment of additional service rigs.

Ezion was also impacted by the strengthening of the Singapore dollar against the greenback, which resulted in foreign exchange losses.

“The operating environment is expected to remain difficult in view of the depressed state of the offshore oil and
gas and marine sector. The Management expects that the Group’s performance for the next six months will continue to be affected by this,” Ezion said in its earnings statement.