O&M players have their backs to wall on tightening cash flows
Ezra unit defaults on payment for charter hires guaranteed by parent company
Singapore
EZRA Holdings and other small- to mid-cap listed offshore and marine counters face increasing cashflow pressure threatening their ability to service debts and interest obligations as contracting activity has yet to rebound from multi-year lows, even as the recent oil price hikes buoy hopes of the O&M sector starting a journey to recovery.
The cracks have surfaced over the weekend for Ezra, with its two trade creditors, Forland Subsea AS and Ocean Yield ASA, divulging the subsea subsidiary of the holding company could not service the bareboat charters on two ships, Lewek Inspector and Lewek Connector.
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