The 2016 financial year loss was a reversal of fortune from the profit of $43.73m in the previous financial year on the back of a severely weakened offshore marine market.
The Singapore-listed company took huge impairments amounting to approximately $368.67m for the financial year, including $119.6m on fixed assets, $76.26m on assets held for sale, $90.9m and $81.98m on investments in associated companies and joint venture firms, respectively.
“The carrying value of certain fixed assets, assets held for sale, associated companies and joint venture companies were negatively impacted due to the depressed conditions and reduced activity in the offshore support sector,” Ezra stated.
“The group is in discussion with various stakeholders and consolidating its funding requirements. In the event that this effort does not achieve a favourable and timely outcome, the group will be faced with a going concern issue,” the company said.
Revenue for Ezra’s 2016 financial year came up to $525.11m, a slip of 3% year-on-year mainly due to general weakness in the offshore industry impacting shallow water platform support vessels and AHTS vessels segments.
“Due to the continued challenging environment in the oil and gas industry, major oil players have scaled down or delayed investing in new capital expenditure, resulting in fewer project awards. This trend is expected to continue and will have a negative impact on the group’s financial performance and executable orderbook in the near term,” Ezra said.
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