Ezion suspends trading on dismal Q2 earnings; posts US$2.57m loss

EZION Holdings on Monday requested a temporary trading suspension of its shares on dismal second quarter earnings.

The offshore logistics group posted a net loss of US$2.57 million for its second quarter ended June 30. This compared to a net profit of US$8.14 million a year ago.

Revenue fell nearly 20 per cent or US$16.3 million from S$83.7 million to S$67.4 million, due mainly to a reduction in charter rates, a drop in the utilisation rate of the group's multi-purpose self-propelled jack-up rigs and jack-up rigs, and further depression in utilisation rate of the group's offshore support vessels.

Ezion posted loss per share of 0.3 US cent, versus earnings per share of 0.39 US cent in the previous year.

No dividends have been declared for the period.

Separately on SGXnet, Ezion issued a letter to shareholders on the "difficult first half of 2017 experienced by the group".

Ezion said: "We are nonetheless confident that with the group's efforts... Ezion will become the industry leader in self-propelled service rigs when the market eventually recovers. The management team will also be reorganised to provide better oversight in this current environment.

"However, the present difficulties faced by the group have presented many challenges to the cashflows of the group that will threaten the fundamental viability of the group's business if these challenges persist."

Ezion added that it intends to solve the problem "comprehensively from all aspects" and will need to work together with all stakeholders to discuss financing options. "While the initial responses from our principal lenders appear positive, the details will need to be finalised. The outcome of the above discussions will very much determine if Ezion will survive the current crisis and emerge stronger than before."