EOL narrows Q2 loss to US$15.98m

EMAS Offshore (EOL) saw its second-quarter loss after tax narrow by 89 per cent to US$15.98 million on a 24 per cent increase in revenue for the same period.

Revenue was higher at US$37.98 million compared to US$30.51 million for a year-ago period.

First-half loss after tax was US$18.19 million, 87 per cent lower compared to US$143.69 million for the corresponding period last year.

Operating cash flows before working capital movements for the three months ended Feb 28 were negative at US$1.32 million compared to negative US$7.69 million last year.

EOL, the embattled offshore support vessel (OSV) arm of Ezra Holdings, has current liabilities of US$858.33 million compared to current assets of US$188.68 million as at Feb 28.

It faces several creditor claims including from owners of five vessels. The owners of Lewek Ariel, Lewek Lynx and Lewek Alkaid have served notices of termination to Emas Offshore (M) Sdn and Bhd and demanded US$13.17 million.

Separately, the owners of Lewek Toucan and Lewek Pelican have served notices of demand to Emas Offshore Pte Ltd and Emas Offshore (M) Sdn Bhd in relation to combined total amount demanded of over US$17 million.

Both Emas Offshore Pte Ltd and Emas Offshore (M) Sdn Bhd are wholly-owned subsidiaries of EOL.

EOL on Tuesday that it has entered into a revised term sheet with BT Investment (BTI) after terminating a prior term sheet on Dec 9, as it presses on with restructuring efforts. BTI, a wholly owned subsidiary of Baker Technology, is proposing to make an investment into EOL.

EOL has also made an application, together with two subsidiaries, to Singapore's High Court to restructure under a scheme of arrangement.