SINGAPORE (Aug 14): Ezion, the charterer of service rigs and support vessels to the Oil & Gas industry, has sunk into 2Q17 and 1H17 losses of US$2.6 million ($3.5 million) and US$15.3 million respectively.

As at June 30, Ezion also reported group total liabilities amounted to US$1.61 billion.

Ezion has asked for a temporarily trading in its shares to be suspended "in view of the group's business and financial situation."

It said the company "is in discussions with its stakeholders such as bank lenders and creditors in relation to its financing and capitalisation structure."

It is also "taking steps to review its options to strengthen its financial position and preserve value for its stakeholders."

Revenue declined 19.5% to US$67.4 million in 2Q17 and 18.0% to US$136 million in 1H17 due to a reduction in charter rates; drop in utilisation rate of the group's multi-purpose self-propelled jack-up rigs and jack-up rigs; and further depression in utilisation rate of the group's offshore support vessels.

Decrease in other income in 2Q17 and 1H17 were mainly due to the lower gain on disposal of subsidiaries, as compared to the gain on disposal of asset held for sale a year ago.

Other operating expenses in both periods under review also included unrealised foreign exchange losses which amounted to US$5.8 million mainly due to the strengthening of the Singapore Dollar against the United States Dollar as at June 30 and this resulted in foreign exchange losses on the group's notes payable.

The increase in finance costs in 2Q17 and 1H17 were mainly due to the additional interest expense for the funding of newly delivered service rigs.

Shares in Ezion last traded at 19.7 cents.