Corporate digest

Ezion Holdings

STRUGGLING offshore and marine company Ezion Holdings reversed out of the red with net profit of US$6.4 million for the half-year ended June 30, compared to a net loss of US$238.1 million.

Revenue fell 54 per cent to US$6.8 million in H1, from US$14.6 million in the corresponding period a year ago. This was mainly due to the divestment of two liftboats during the period.

But the company eked out a gross profit of US$0.5 million, compared to a gross loss of US$6.7 million in the year-ago period, due to lower depreciation expense and lower operating costs following the divestment of the liftboats.

In a bourse filing on Tuesday, the group said it forecasts that the cash flows from continuing businesses are sufficient to meet its working capital needs in the next 12 months, but not to meet its loan and interest obligations.

It added that it remains committed to seek third party investors to re-capitalise the company, and to negotiate a debt restructuring plan with existing lenders.

The group said it has received three letters to date from external third parties expressing interest towards investing in the company, and will evaluate the proposals.

Trading in Ezion shares has been suspended since March 2019.

First Ship Lease Trust

THE trustee-manager of First Ship Lease Trust (FSL Trust) on Tuesday announced that a wholly owned subsidiary of the trust has agreed to sell a chemical tanker to an unaffiliated third party.

The FSL Trust unit has entered into a memorandum of agreement to sell the vessel, FSL London, and has received the initial 10 per cent deposit in escrow, the trustee-manager said in a bourse filing.

FSL London was built in 2006 and has a carrying capacity of 19,966 dwt (deadweight tonnage).

Units of FSL Trust closed 1.3 per cent or 0.1 Singapore cent higher at 8.1 cents on Tuesday, before the announcement.