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Ezion Holdings Q3 loss widens to US$20.9m

LIFTBOAT-FOCUSED Ezion Holdings' loss after tax for the quarter ended Sept 30 widened to US$20.9 million, from US$13.7 million in the previous year, the group said in a Singapore Exchange filing on Thursday morning.

However, loss per share for the quarter was 0.57 US cent, compared with loss per share of 0.75 US cent in the preceding year on the back of a larger share base following the issue of over 1.25 billion shares at 24.87 Singapore cents, and more than 222.03 million shares at 27.63 Singapore cents during the second quarter to security holders exercising the equity swaps.

Ezion also placed over 96.15 million of new shares at an issue price of 20.8 Singapore cents to Temasek-linked Pavilion Capital in April.

For the three months ended Sept 30, revenue dropped 55.9 per cent to US$28.1 million from US$63.7 million in the year ago period.

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In its filing with the Singapore Exchange, Ezion said that the fall in revenue for the period was mainly due to continued delays in the re-deployment of its liftboats due to working capital constraints before the finalisation of the refinancing of its bank borrowings and not recognising revenue when the group has assessed that certain customers are not able to meet existing charter obligations.

In addition, lower utilisation rates of the group's tugs, barges and jack-up rigs, and overall reduction in charter rates across its fleet of vessels also weighed on performance for Q3.

However, Ezion's cost of sales and servicing for the period decreased by 44.1 per cent to US$34.7 million as compared to the US$62 million registered in the year ago period, largely due to lower depreciation expenses on vessels.

Net asset value per share shrank to 11.71 US cents as at Sept 30, from 14.70 US cents nine months ago.

Ezion Holdings shares ended down S$0.002 or 3.6 per cent at S$0.053 on Wednesday, before its results were announced.