SINGAPORE (Feb 25): Ezion Holdings was one of the darlings of the offshore and marine boom. During its heyday (2012 to 2014), it took stakes in three small companies — Alpha Energy Holdings, Charisma Energy Services and Aus- Group. Since the start of the year, all three companies have announced new initiatives, which, if they materialise, could sustain cash flow and earnings for several years.
The major obstacle is likely to be the availability of funds to fulfil their vision. As at April 2018, Ezion owned a 41.48% stake in Charisma Energy; and, based on a circular dated Feb 18, it holds a 26.43% stake in Alpha Energy. Following a restructuring,
Ezion holds 12.2% of AusGroup. The relationship between Ezion, Alpha Energy and Charisma Energy is likely to continue. On Feb 4, Charisma Energy announced a suspension of its shares while the company is in discussions with banks and creditors to restructure. Charisma Energy, which owns offshore and marine assets such as rigs, plans to divest these assets. “The group is working on exiting the oil and gas business, and contributions from O&G assets will be minimal going forward. The group will continue to focus on developing and operating renewable energy assets, and building a future in renewable energy,” Charisma Energy states in its 2017 annual report.