Ezra’s profit plunged 19% to $95.37m in FY14

Blame it on lower operating income.

Mainboard-listed Ezra Holdings reported a 19% year-on-year decrease in its profit before tax for FY14. The group’s profit before tax was $95.37m (US$74.7m) for the financial year ended 31 August, down from $117.8m (US$92.28m).

The decrease was mainly due to lower other operating income and was partially offset by higher gross profit and share of profit ofc associated companies.

Profit before tax for decreased by 22% to US$17.0 million in 4Q14 when compared to 4Q13. The decrease was mainly due to lower gross profit and share of profit of associated companies and was partially offset by lower administrative expenses.

The decrease in gross profit and gross profit margin in 4Q14 as compared to 4Q13 was mainly due to the a lower gross profit margin contribution from the Offshore Support Division as a result of weakness in the AHT and PSV segment. 

In addition, gross profit margin for Subsea Services Division was also lower resulting from higher project close out and variation orders recognised in 4Q13 compared to 4Q14.