Massive impairment by Ezra's subsea JV partners clouds its future (Amended)

Its JV partners unveil writedowns from their stakes in Emas Chiyoda Subsea; Ezra's stake in ECS 'could face impairment of US$185m to US$385m'

Published Wed, Feb 1, 2017 · 09:50 PM

triyards

Singapore

EZRA Holdings's early-morning trading halt on Wednesday has fuelled speculation over how the beleaguered offshore-and-marine group can withstand another massive impairment charge corresponding to the writedowns that have been unveiled by its subsea joint-venture (JV) partners.

A Maybank Kim Eng internal research note warned about taking cues from the two writedowns totalling 51 billion yen (S$635 million) by the Japanese partners of Emas Chiyoda Subsea (ECS).

The brokerage said Ezra will see its entire equity wiped out upon taking its corresponding share of impairment.

The JV partners, Chiyoda Corp and NYK Line, on Tuesday issued warnings against one-time writedowns - 38 billion yen fo…