What’s going to keep Ezra afloat after dreary 3Q?

Its loss-making subsea division remains unsolvable.

It’s becoming harder for the shipping firm to keep its hopes up after it registered a net loss of US$7.8m, after discontinued operations bombarded the company following its transaction with Chiyoda.

However, analysts are saying one silver lining remains for Ezra to cling to.

According to analysts from DBS, Ezra’s marine services division, subsidiary Triyards, is the bright spot for the shipping company, as it registered increases in both revenue and profits under the radar.

DBS said the strong performance was a result of strong order wins over the last year.

“Triyards has announced close to US$600m of new order wins, and following the acquisition of Strategic Marine, has also been able to diversify its product offerings and win newbuilding contracts for aluminium crafts and chemical tankers,” DBS said.

Meanwhile, DBS warned that net losses likely to continue over the next two years despite its ties with Chiyoda.

“However, the losses should be lower than FY15’s core net loss, as subsea division performance should improve by some extent and Ezra will only be recognising 50% of the losses as the subsea division will be accounted on the JV line,” DBS added.