Ezion board guides for Q1 'significant net loss' on the back of asset impairments

THE board of troubled Ezion Holdings has warned of "a significant net loss" for the first quarter to March 31, in a bourse filing issued on Monday night.

The potential loss stems from an assessment of impairments on group assets. The assessment exercise was carried out after the coronavirus pandemic and plummeting oil prices "continued to adversely affect the reactivation and deployment plans of the group" and stymied its restructuring.

The Ezion board based its guidance on a preliminary review of the draft unaudited management results. The unaudited consolidated financial results are set for release by this Thursday.  

Meanwhile, the hearings for winding-up applications against two of Ezion's wholly-owned subsidiaries will be held at 10am on June 12, the board separately announced.

Ezion said that the hearings for Teras Conquest 3 and Teras Conquest 5, the winding-up of which has been sought by Whitesea Shipping & Supply, have been pushed back from the original date of April 17 because of the "circuit breaker" controls imposed in Singapore to curb the spread of the virus.

"The company will keep its shareholders informed of any material developments and make the necessary announcements," the board added.

Trading in Ezion shares was voluntarily suspended in March 2019, when the chairman and chief executive asked for shareholders to pray for them.