By: musicwhiz Ezra released their FY 2008 results yesterday, and I also took the opportunity to purchase more shares at 59.5 cents to add to my existing holdings. I will be doing a brief review here (not too detailed la) based on their financials, press release and powerpoint presentation. I will also be tackling some very pertinent questions raised by a forumer named "amigos" in the Channel News Asia forums. He obviously delved quite a bit into the industry and asked some good questions about the Group which I would like to address. Hence, I will be copying/pasting his questions on my post and providing the replies to address the relevant issues here. Profit and Loss Analysis The good news is that top line has grown 87% from FY 2007 to FY 2008, but this was largely expected with the delivery of more vessels thus contributing to higher recurring revenues for the Group. Also note that the Energy Services division made its maiden revenue contribution of US$29.2 million, though net margins for this division were low at 12% (resulting in a contribution of "just" US$3.5 million for FY 2008. Sales for the Marine Division nearly doubled to US$64.2 million while the offshore chartering division contributed about US$174.9 million to revenues. Note that gross margins have fallen as a whole for Ezra from FY 2007 to FY 2008, from close to 35% in FY 2007 to just 29.6% in FY 2008. From Page 7 of their results presentation, it can be seen that gross margins for offshore and marine divisions had dipped slightly; probably due to the delays in the delivery of vessels during FY 2008 which meant that Ezra had to charter third-party vessels to complete certain projects. Read more..