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Ezion Holdings warns of net loss of US$1b for Q4 2017 and FY2017
EZION Holdings issued a profit guidance late on Wednesday for the group's financial performance for the fourth quarter and full year ended Dec 31, 2017.
The group is likely to record a net loss of approximately US$1 billion for both Q4 2017 and FY2017, largely attributable to the impairment losses of approximately US$900 million.
In August 2017, the group commenced its refinancing exercise with various stakeholders in order to alleviate cashflow challenges that it faced due to the prolonged downturn in the oil and gas sector. During the course of the refinancing exercise, the group said, it continued to experience delayed payment from its clients which further constrained cashflow.
In a filing to the bourse, the group said that it also experienced delays in re-deployment of some of its assets, which in turn, adversely affected revenue and the profitability of the group, especially for Q4 2017 and the consolidated results for FY2017.
In addition, the oversupply of offshore logistics vessels and jack-up rigs in the industry has resulted in lower charter rates and depressed the market value of the group's assets, lowering its gross profit margins and cashflow. This has adversely affected the group's business, financial condition, operations and prospects.
The group will announce its unaudited consolidated financial results for Q4 2017 and FY2017 on March 28.