Corporate digest

Sing Investments & Finance

SING Investments & Finance posted a net profit of S$4.8 million for the third quarter ended Sept 30, 12.9 per cent lower year-on-year. This was despite interest income and hiring charges having risen 13.4 per cent from S$19.3 million to S$21.9 million. The weaker performance was mainly the result of higher operating expenses. No dividend was declared for the quarter.

Ezion

EZION Holdings has entered into a conditional sale and purchase agreement to sell three rigs to TK and HR Services SA de CV at a US$2.25 million loss. The sale consideration includes a nominal cash consideration of US$3 and the novation of liabilities of approximately US$659,000 to the buyer.

The aggregate carrying value and net tangible asset value of the rigs as at June 30 was about US$2.91 million. The scrap value of the rigs was approximately US$1.1 million, which is insufficient to cover the US$600,000 costs required to scrap the rigs and the settlement of liabilities of US$659,000 relating to the rigs.

There is a deficit of approximately US$2.91 million of the proceeds over the book value of the rigs and the proposed disposal is expected to incur a loss on disposal of US$2.25 million.

The proposed disposal is in line with the group's plan to reduce burn rates of the service rigs that are currently not deployed, and this will enable Ezion to "improve the efficient use of its capital and cash flow".