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Ezion expects net loss of US$1 bil for 4Q17 and FY17

PC Lee Published on Thu, Mar 22, 2018 / 8:11 AM GMT+8

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SINGAPORE (Mar 22): Ezion Holdings has issued a profit warning, saying it expects to record a net loss of approximately US$1 billion ($1.3 billion) for both 4Q17 and FY17, largely attributable to the impairment losses of approximately US$900 million.

In a Wednesday night filing, 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 4Q17 and the consolidated results for FY17.

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.