Ezion to sell vessel for US$2.25m to Astro Offshore

TROUBLED liftboat operator Ezion has inked a memorandum of agreement to sell its Teras Genesis vessel to Singapore-based Astro Offshore for US$2.25 million in cash. 

The sale is expected to generate a gain of US$858,000 for Ezion, based on the vessel's US$1.39 million carrying value as at end-September. Ezion will use the sale proceeds to repay its secured bank loans. The mortgage over the vessel will be discharged after the sale. 

"(The) disposal is in line with the group's plan to focus on its liftboats and reduce burn rates of the service rigs and vessels. This will also enable the group to improve the efficient use of its capital and cash flow," Ezion said in its filing.

Incorporated in Singapore, Astro Offshore owns and operates a fleet of offshore support vessels. The sale price was arrived at on a willing-buyer-willing-seller basis. 

Assuming that the sale was at end-2018, the net liabilities per share of Ezion as at that date would have increased from 6.87 US cents to 6.88 US cents. 

Ezion shares have been suspended from trading since March 2019.