Offshore construction work has continued in Malaysia even when oil prices were at $10 per barrel, Ezra chief executive Lionel Lee said at a results briefing last Friday.

The acquisition not only provides Ezra with a buffer against oil price movements, but also a steady revenue stream from Perisai’s pipelay barge, Enterprise-3.

The pipelayer is contracted to leading Malaysian offshore construction player TL Offshore through 2013.

The vessel is on charter for another 1085 days at a day rate of $95,000, subject to a 5% annual escalation and a lower standby rate of $57,500, the Star newspaper reported last week.

Ezra is also looking at extending its capability through the acquisition. The addition of Enterprise 3 means Ezra now owns a fleet capable of performing offshore construction in a wide range of water depths, from as shallow as two metres to more than 3500 metres, according to Lee.

The Singapore-based contractor, however, has no immediate plans to participate in the mobile production and storage unit (MOPSU) joint venture Perisai has earlier set up with fellow Malaysian outfit Gryphon Energy.

Lee said although no decision has been made on the MOPSU business, it does not fall in line with Ezra’s business plans.

Perisai also owns stakes in two other vessels, the 1969-built Alpha Shield and 1980-built Allied Shield, which Lee said are likely to be offered on the spot market or put up for sale.

Ezra posted a 23% fall in first half revenue to $135.4 million despite an 18% jump posted for the second quarter ended 28 February 2010.

Lee attributes the fall in first half revenue fall to mandatory drydocking of vessels during the first quarter.

As of the end of February, Ezra had another $100 million capital expenditure committed towards three newbuilds, including two multi-functional support vessels (MFSVs) and a DP3 construction vessel.

Deliveries of the MFSVs Lewek Fulmar and Lewek Falcon are scheduled for August 2010 and March 2011, while the DP3 Lewek Crusader will be delayed to August 2010 due to changes in client-specified requirements.

Lewek Crusader is being proposed for a charter in Asia and the contract will be firmed up towards the vessel delivery date, according to Lee.

Ezra will also be actively looking for asset acquisitons opportunities from financially distressed US outfits, in line with its efforts to strengthen its presence in West Africa and the Gulf of Mexico, as well as to break into the Brazilian market.

Asked which assets will interest Ezra, Lee said the vessel owner is keen on ‘"ROV and IMR (remotely operated vehicles and inspection, maintenance and repairs)" units.

Ezra has recently acquired a platform supply vessel at 20% below the market value from a seller hit by the financial crisis, according to Lee. The newbuild, to be named Lewek Aries is due for delivery this month.

Published: 12 April 2010 03:51 GMT  | Last updated: 12 April 2010 07:36 GMT