Ezion

Ezion sinks into losses in 2Q and 1H; calls for temporary suspension of trading

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."

Recovery outlook shrouded in uncertainty for this offshore support company

SINGAPORE (May 15): UOB KayHian is maintaining its “hold” call on Ezion, recommending investors enter at 28 cents and exiting at 33 cents.

Ezion had previously guided for an operational recovery to take place within 2Q17. However, after its 1Q17 results announcement, it appears that this guidance will now have to be pushed back.

Ezion sinks to 1Q net loss of $18 mil

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.

What acquisition of remaining 50% stake in JV means for Ezion

SINGAPORE (March 28): Ezion this morning announced that it had acquired the remaining 50% interest in its existing joint venture with Swissco for a total cash consideration of $5 million.

(See also: Ezion acquires existing JVs & assets in efforts to improve earnings)

EMAS Offshore faces uncertainty as ongoing concern on Ezra's US Chapter 11 filing

SINGAPORE (March 21): EMAS Offshore says it will be negatively impacted by the United States’ Chapter 11 filing by the company’s ultimate holding company Ezra Holdings to facilitate the restructuring of the group.

EMAS Offshore is therefore currently seeking advice on the US bankruptcy filing, as well as assessing the impact of such filing on the group and on the group’s ongoing initiatives to refinance its financial obligations and liabilities and the procurement of additional working capital facilities.

‘Clear survivors’ emerging from the O&M downturn

SINGAPORE (March 10): UOB Kay Hian says clear survivors to the offshore and marine industry downturn are steadily emerging.

The brokerage is maintaining its “market weight” rating on the sector.

“In our opinion, key to surviving this downturn requires strong cashflow generation and continued de-leveraging,” says UOB lead analyst Foo Zhiwei in a Friday report. “A review of companies’ core margins highlights several candidates that will clearly survive the downturn.”

Improved cash flow, upcoming rig acquisitions earn Ezion an upgrade

SINGAPORE (March 8): Lim & Tan Securities is upgrading its rating on Ezion Holdings to “hold” from “reduce” previously, mainly because it is now trading at an improved price-to-book value of 0.58x P/B.

Ezion is said to be in final talks with the interim judicial managers of Swissco Holdings to take over four rigs co-owned by joint ventures (JVs) between the two parties, at a total consideration of over US$16 million ($22.6 million).

Ezion gets an upgrade as impairment risks diminish, cashflow improves

SINGAPORE (Feb 28): UOB is upgrading Ezion to “buy” with a target price of 45 cents on improved cash flow situation and expectations of an earnings recovery as the risk of impairments has diminished.

Ezion reported a headline net loss of US$66.6 million ($93.6 million) for 4Q16 and US$33.6 million for FY16, taking an impairment charge of US$70.9 million.

Ezion’s 4Q losses widen to US$66.6 mil

SINGAPORE (Feb 23): Ezion reported a widening of new 4Q losses to US$66.6 million from US$63.5 million a year ago on the back of a 14.3% fall in revenue to US$72.6 million.

For FY16, Ezion swung to a loss of US$33.6 million on lower sales and higher cost of sales and other operating expenses which include impairment losses.

Seize the day with a beaten-down stock in the midst of sector recovery

SINGAPORE (Jan 16): OCBC Investment Research has upgraded its call on Ezion Holdings from “hold” to “buy” with a fair value estimate of 54 cents.

Although it continues to expect a challenging operating environment for energy equipment and services (E&P) investment companies, the research house is suggesting that longer-term investors “look beyond this” and instead, choose “pick up beaten-down stocks whose negatives have been mostly priced in” such as Ezion.   

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