SINGAPORE (May 12): Ezion has sunk to a 1Q net loss of US$12.7 million ($17.9 million) from $15.5 million a year ago as operating environment in the marine and offshore oil and gas industry remains challenging.

Revenue for 1Q17 fell 16.4% to US$68.6 million due to a reduction in charter rates, drop in utilisation rate of the group’s service rigs due as two units undergo class survey and repairs and further depression in utilisation rate of the group’s offshore support vessels.

Cost of sales and servicing decreased 2.6% to US$59.8 million.

Other income fell 98.4% to US$215,000 mainly due to the absence of gain on disposal of asset held for sale in 1Q16.

Share of results of associates and joint ventures fell 55.8% to US$3.6 million.

Looking ahead, Ezion says fossil fuel prices have again shown weaknesses in the recent weeks. In addition, despite clients’ new requirement for the group’s asset and services, the rates remain depressed.

Shares of Ezion closed at 31 cents.