Singapore’s Ezra Holdings has posted a net loss for the first quarter ended 30 November 2015 for its 2016 financial year, and is anticipating a tough year ahead.

Singapore-listed Ezra registered a deficit of $55.35m in the first quarter as against a profit of $54.41m in the previous corresponding period.

First quarter revenue saw an increase of 19% year-on-year to $152.27m due mainly to strong contributions from its marine services division, but partially offset by its offshore support and production services division.

The group’s marine services division, predominantly Triyards, reported an increase of $45.4m in revenue for the first quarter compared to the year-ago period.

The offshore support and production services division, predominantly EMAS Offshore, saw adecline in revenue of $19.3m due to the general weakness in the offshore industry. The division is likely to experience lower charter rates and decreased vessel utilisation for its financial year 2016.

“The global oil and gas industry continues to be challenging for the offshore marine and subsea companies,” said Lionel Lee, group ceo and managing director for Ezra.

“The volatility of the oil price and the depressed state of the oil and gas industry has led to reduced activity and uncertainty in new contract awards. Like other oil and gas support services companies, we are currently working in opposition to industry tide and against difficult market conditions during this downcycle,” Lee commented.

“FY2016 will be a tough year for the group. As we strive to work amidst the extremely challenging operating conditions, the group will focus on improving vessel utilisation and project execution as well as winning contracts. The group continues to work on the rationalisation of its non-core assets with the goal of deleveraging its balance sheet,” he said.