Ezra Holdings Limited has embarked on a landmark vessel operating agreement (VOA) which will enable it to drive future returns and growth without any major capital outlay.

Under the VOA, Ezra will manage and operate four new anchor handling, towing & supply (AHTS) vessels for an offshore specialist fund in return for a half-share of the profit earned, after deducting direct operating expenses from the charter revenue.

The vessels are still under construction, with the first AHTS slated for delivery in the first quarter of 2010 (1Q 2010). The AHTS vessels are basic workhorses of the offshore oil & gas support services industry that are deployed throughout the entire oil field life cycle.

Ezrafs Managing Director, Mr Lionel Lee, said, “This latest deal sets us in line with our strategy to expand our capabilities and extract value from our existing expertise in offshore fleet management. This is a powerful endorsement of our edge in the sector and we intend to grow this into a viable and highly profitable business for the Group. We have already established a strong earnings track record since our IPO in August 2003 and our next lap of growth will be driven by expanding our services revenue with minimal capital expenditure and moving into the sub-sea segment. These activities are also expected to boost returns to shareholders”.

Tags: Ezra Holdings Limited