Ezion Holdings

Assessing risk is about balancing debt and cash flow

SINGAPORE (Dec 9): Assessing risk is an everyday occurrence. When approaching a traffic light while driving, should we accelerate as it turns amber or wait for the next green light? Drivers assess risk every day. As investors or traders, should we buy DBS Group Holdings or Oversea-Chinese Banking Corp for exposure to private banking? Should we opt for Ascendas Real Estate Investment Trust or Mapletree Industrial Trust for exposure to business and tech parks of the future economy?

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Malaysia oil-services firm Yinson sails to the rescue of Ezion

(Apr 2): Malaysia-listed oil-services firm Yinson Holdings Bhd has come to the rescue of Ezion Holdings.

The loss-making Singapore liftboats operator will be acquired by a unit of Yinson after it struck a deal with Ezion's lenders.

See: Over 99% of Ezion shareholders vote in support of debt refinancing package

Perpetual securities are debts, not equity. Here's why

(Apr 1): If it walks like a duck, quacks like a duck, looks like a duck, swims like a duck, then it probably is a duck. Why are companies so intent on classifying perpetual securities (perps) as equity, instead of what they really are: financial liabilities or debts? Looking at a simplified balance sheet and profit-and-loss statement of a hypothetical company (see Table 1) provides the reason.

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Will potential white knight investor rescue Ezion from the red?

SINGAPORE (Mar 11): DBS Vickers Securities is reiterating its “hold” call on Ezion Holdings with a target price of 5 cents, which is based on 10 times FY20 fully-diluted earnings after lowering FY20 earnings forecasts by 45%.

The lower estimates come on the back of slower-than-expected ramp-up in utilisation and revenue, as Ezion remained in the red over 4Q18 with core losses of about US$28 million. Its revenue for the quarter was mainly affected by a delay in redeployment due to working capital constraints and higher maintenance costs incurred.

Ezion cut to 'hold' by DBS on potential asset impairments and slower recovery

SINGAPORE (Feb 7): DBS Group Research is downgrading Ezion Holdings, the provider of service rigs and offshore logistics support services, to “hold” with lower target price of 6 cents.

This comes after the research house pegged the stock a lower target multiple of 0.3x FY19F book value versus 0.8x previously, in anticipation of potential asset impairments and slower-than-expected ramp up in utilisation and revenue.

Will JV help Ezion become world's largest liftboat owner and operator?

SINGAPORE (July 5): Ezion Holdings is forming a joint venture to become the world’s largest owner and operator of liftboats.

In a filing this morning, Ezion said wholly-owned subsidiary, Teras Investments, has entered into a JV with Alliance Offshore Group to cooperate in the ownership and operations of liftboats.

Alliance Offshore is a wholly-owned subsidiary of TSC Group Holdings which is listed on the Hongkong Exchange and is 52% indirectly-owned by China Merchants & Great Wall Ocean Strategy & Technology Fund (LP).

Ezion an opportunity for bottom-fishing after unexpected selldown, says DBS

SINGAPORE (May 15): DBS Group Research is maintaining a “buy” on Ezion Holdings saying the stock provides a bottom-fishing opportunity.

With successful restructuring, improving outlook and strategic shareholders coming in above 20 cents, DBS says it did not expect the stock to be sold down to 0.5 times impaired book value.

Since the lifting of share trading suspension on April 17, Ezion’s shares has trended lower. given selling pressure from Prudential - M&G which was paring down its stake to below its initial 5.65% or 132 million shares.

Temasek's Pavilion Capital Fund invests up to $50 mil in Ezion

SINGAPORE (Apr 6): Pavilion Capital Fund Holdings, a subsidiary of Singapore state investment firm Temasek Holdings, is investing up to $50 million in Ezion Holdings, the offshore and marine firm which recently concluded a debt restructuring deal.

See: Over 99% of Ezion shareholders vote in support of debt refinancing package

Pavilion Capital has agreed to subscribe to 96.2 million new Ezion shares at an issue price of 20.8 cents each.

Successful refinancing is only half the battle won for Ezion, says DBS

SINGAPORE (Apr 4): Successful refinancing is only half the battle won, says DBS Group Research, with the other half being earnings recovery which requires having strategic shareholders.

The refinancing proposal, which has been approved by its lenders, security holders and shareholders, minimises insolvency risk for Ezion as principal repayments will be pushed back by six years.

Over 99% of Ezion shareholders vote in support of debt refinancing package

SINGAPORE (Mar 29): Shareholders of Ezion Holdings have voted almost unanimously in support of a debt refinancing and restructuring package that will strengthen the group's cash flow and provide additional working capital in the prolonged O&M sector downturn.

At the EGM on Wednesday, 99.2% of votes cast were in favour of the debt refinancing proposal that will ease liabilities by as much as US$371 million ($487 million) and generate new funds of up to US$486 million.

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