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Ezion Q3 net loss swells to US$75.4m amid 12% fall in revenue

NET loss for Ezion Holdings swelled to US$75.4 million in the third quarter ended Sept 30 from a net loss of US$8.06 million a year ago, it announced in a Singapore Exchange filing on Tuesday.

Third-quarter revenue for the troubled offshore and marine group was US$24.7 million, down 12 per cent from the previous third quarter. This was mainly due to reduced utilisation and charter rates for the group's jack-up rigs, tugs and barges in Q3.

Following an impairment assessment, Ezion recognised an additional impairment of US$49 million, mainly comprising impairment losses on plant and equipment, and trade and other receivables. It also recognised additional loss allowances for expected credit losses on financial guarantees to a joint venture of US$8.1 million. Other operating expenses increased to US$60 million from US$2 million a year ago as a result.

Loss per share was 1.91 US cents, compared with loss per share of 0.3 cent a year ago.

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For the nine months ended Sept 30, net loss was US$455.07 million, while the company had a net profit of US$48.4 million in the same period of the previous year.

Revenue fell 13.3 per cent to US$77.1 million, mainly due to a decrease in utilisation rates of liftboats and systemic problems such as tighter credit terms imposed by the group's vendors. Ezion also has not been able to draw down the required funds from its secured lenders in a timely manner, severely affecting its ability to operate, maintain and deploy its assets.

Loss per share was 12.02 US cents, compared to earnings per share of 1.83 cents in the corresponding period of the previous year.

Ezion shares have been suspended from trading since March 2019.