Ezion earnings to get hit by difficult offshore market

Singapore-listed Ezion said that in view of the difficult market conditions over the next 12 months, it has carried out an assessment on the impairments of its assets based on their intended redeployment.

“While the value of the impairments are yet to be determined, it is expected that the financial results of the group for 4Q2015 will show a net loss and a significant decline in the net profit for FY2015,” the company stated.

It added that the continued depressed fossil fuel prices have prompted the group’s clients to further tighten their expenditure even in the areas of operating expenditure which are related to extraction and production activities.

“The group expects the challenging and uncertain market conditions of the global oil and gas industry to be prolonged and has embarked on the redeployment of the group’s assets for different usages,” Ezion said.

The company will announce its results on 29 February.

Recently, Ezion entered into a joint venture agreement with a Chinese state-owned enteerprise for the deployment of service rigs to support China’s offshore windfarm market.