Ezion’s net profit sinks 31.5% to US$19.8m in 2Q16

Deployment of additional service rigs pulled its earnings down.

Ezion Holdings Ltd. registered a higher cost of sales and servicing for 2Q16 due to the deployment of additional service rigs.

Compared to the same period last year, Ezion's current cost of sale and servicing stoked a 12% increase, raising it up to US$65.9 million.

"As a result of the above, the Group's gross profit for 2Q16 decreased by US$13.6 million (43.3%) to US$17.8 million as compared to 2Q15," Ezion said in a statement.

Meanwhile, the refurbishment of the group's service rigs has decreased its cash flow from investing activities, bringing down the amount to US$18.3 million.

This was then offset by the proceeds from the disposal of assets held for sale which boosted the group's bottomline a US$14.6m gain.

Ezion reported a decrease in total revenues for the second quarter of this year mainly due to service rigs which underwent modification and routine class surveys.

The group's total revenue decreased by 7%, down to US$83.7.