SINGAPORE (Jan 8): EMAS Offshore, which provides chartering and ship management services, has turned in earnings of US$148 million ($194 million) for the quarter ended Nov 30, well above the US$10.4 million achieved a year earlier.

The result was driven by a bargain purchase gain of US$137.5 million stemming from the completion in October of its union with Ezra Holdings' offshore support services division and the acquisition of 44 offshore support vessels.

A bargain purchase, also known as negative goodwill, occurs when a company acquires an asset for less than its fair value.

Excluding the exceptional item, EMAS's earnings for the quarter was US$10.9 million.

Revenue fell 9% to US$72.7 million due to the return of a leased-in third party vessel to its owner and weakness in its shallow-water platform business.

The outlook for the coming quarters is uncertain, according to EMAS.

"There has been significant volatility and recent weakness in the oil price environment that has caused global concerns on the prospects of both the oil and gas and oilfield services operators," it said in a statement.

"A prolonged decline and/or weakness in the global macroeconomic environment could result in reduced activity in the exploration, development and production of oil and natural gas."

EMAS shares rose 3.6% to 57 cents yesterday.