SINGAPORE (Aug 11): Ezion Holdings saw a 31.5% fall in 2Q earnings to US$19.8 million ($26.6 million) from US$28.9 million a year ago on lower gross profit.

Revenue for the three months ended June decreased by 7% to US$83.7 million from last year, mainly due to service rings that underwent modifications and routine class surveys.

Cost of sales and servicing for the quarter also increased by 12.4% to US$65.9 million due to the deployment of additional service rigs, comprising multi-purpose self-propelled jack-up rigs and jack-up rigs.

As a result, gross profit decreased 43.3% to US$17.8 million as compared to 2Q15.

In a Thursday filing, Ezion says the industrial environment remains “very challenging” in view of low fossil fuel prices and the cut-back in expenses from oil majors. The group expects strong headwinds to continue into the second half of the year.

According to Ezion, its management is working hard to complete the repairs and modifications of several of its service rigs to ensure they can return to work before the end of the year.

Ezion closed 6.5% lower at 29 cents on Wednesday.