EMAS Eyes Big Opportunity in the Subsea Sector

In his company’s 2013 annual report, Mr. Koh Poh Tiong, chairman of Singapore-based Ezra Holdings, recently commented on his company’s growth in the subsea sector:

Since coming on as a relatively new entrant to the global scene in terms of subsea contracting work, we have progressed from less complex subsea work from previous years to now more complex Subsea Umbilicals, Risers and Flowlines (SURF) and full Engineering, Procurement, Construction and Installation (EPCI) projects. The value of these contracts has also been growing, and we are now bidding for project of value in excess of USD $200 million. Our contract wins in the subsea sector have contributed significantly towards our achieving more than USD $1 billion in revenue for FY2013.

Ezra’s revenue for 2013 increased by USD $277.9 million, a 28% jump over FY2012 figures which was largely driven by USD $236 million of  increased revenue seen by the company’s Subsea Services Division.  Ezra’s Offshore Support Services and Marine Services Divisions saw gains of US$10.1 million and US$31.8 million, respectively.

Group CEO and Managing Director Mr. Lionel Lee adds that projected capital expenditures are likely to support growth in the subsea sector, he adds:

“Subsea capital expenditure is expected to rise from some US$19 billion in 2012 to US$40 billion in 2017. Also, according to Douglas-Westwood, 2012-2016 will see some US$367 billion of investment on offshore infrastructure, compared with US$254 billion the preceding five years.

We will see a record amount spent on in-field tiebacks to the tune of US$140 billion.”

Building on their 2013 growth and contract wins in January, EMAS, a subsidiary of Ezra, has announced $125 million in new contracts today spread between the South China Sea and West Africa.

EMAS AMC, the subsea-focused arm of EMAS, added to its backlog with the award of a deepwater pipeline project in the South China Sea, plus the associated flowline and PLET (Pipeline End Terminations) installation.  The work is to be performed in water depths of up to 1,400 meters according to EMAS.  Offshore West Africa, EMAS AMC will be conducting FPSO mooring repair work and both projects are expected to begin in Q1 2014.

EMAS Marine gained contracts to conduct offshore support work in Malaysia, Thailand and Australia utilizing two Anchor Handling Tug and Supply vessels and one Platform Supply Vessel.

“These are important wins for us as it strengthens our presence in West Africa and growing leadership in Asia. The subsea project in the South China Sea is also a clear recognition of the deepwater pipelay capabilities of our subsea team and our key assets here in Asia,” commented Lee.

“The Asia Pacific region is an important market for us with offshore support, subsea construction and engineering activities expected to continue picking up as oilfield operators venture further offshore. With our strong roots here in Asia, we are well positioned to compete for the many upcoming projects in the region.”
EMAS reported strong top-line growth with operational profitability in 1QFY14 and the Group’s orderbook currently stands at above US$2 billion.

In a separate announcement, the Group’s associated company, EOC Limited, announced a 5-year US$100 million award for the Lewek Conqueror, a hook up and maintenance accommodation barge, for work offshore Brunei with an undisclosed oil major.