Ezion venture wins S$364m deal

SINGAPORE — Oil and gas services provider Ezion Holdings yesterday said its joint venture with Kim Seng Holdings had secured contracts worth about US$298 million (S$364 million) to provide two service rigs to a Central American national oil company for seven years.

The rigs, to be deployed in the Bay of Campeche in Mexico, are expected to be working by the first quarter of next year, Ezion said. The deal is not expected to have a material impact on its earnings or net tangible assets per share for the financial year ending next month, it said.

The announcement came after Ezion reported third-quarter profit surged by 24.4 per cent from the corresponding period last year to US$16.1 million, as revenue jumped 21.1 per cent to US$38.6 million.

Turnover rose mainly due to chartering contribution from the deployment of two jack-up rigs and higher contribution from offshore logistic support services in Queensland, Australia.

Ezion said it expected more lift-boats and jack-up rigs to be deployed in the current quarter, while revenue from Australia is likely to increase with the commencement of the Queensland Curtis LNG project by year-end.

“The group will also continue to focus on investment in service rigs to meet the strong demand from its customers in the oil and gas industry,” it added.