Ezra Holdings reported a 19% YoY rise in revenue to US$152.3m but saw a 44% fall in gross profit to US$15.7m, leading to a net loss of US$55.3m. Of this, net loss from continuing operations was US$18.6m while net loss from discontinued operations was US$36.7m (recall that certain subsidiaries and associated companies related to the subsea services division have been classified as discontinued operations).

The higher revenue was mainly due to the better performance at Triyards, the group’s marine services division. Poor performance in the offshore support (shallow water PSV segment remains weak) dragged down the group. Looking ahead, Ezra expects its financial performance for the rest of FY16 “to remain challenging”. We will be participating in an analyst call this morning; prior to this set of results we had a HOLD rating and fair value estimate of S$0.16.

Source: OCBC Research - 14 Jan 2016