Homepage
PR Newswire
PUBLISHEDOCT 3, 2017, 6:34 PM SGT
https://www.straitstimes.com/business/ez...-bank-line
Also waiting in the wings is a strategic investor - an industry-based conglomerate - that is keen to work with Ezion, but wants to see the refinancing completed first.
Mr Chew Thiam Keng, Ezion's chief executive, told The Straits Times on Tuesday (Oct 3): "When we look at what they want to do, what they can do, we have a perfect fit. They are very big. I would say they are very gentle and genuine."
Ezion has a fleet of 14 liftboats, 20 rigs, and 45 small vessels. At present, seven liftboats and three rigs are deployed. Another six rigs are deployed but the contractors are not paying.
According to an illustration of cashflows presented by financial adviser RSM, Ezion could make a net cashflow of US$933 million over the next six years, based on current charter rates, which have fallen more than 50 per cent since 2014.
Mr Chew said: "Our liftboats are all new. The oldest is about seven years old, and the average age is two years. If God is willing, we should have all deployed by the middle of next year."
RSM assumed an 80 to 85 per cent liftboat utilisation rate in its illustration. Liftboats are used to maintain and repair production platforms in shallow-water oil fields, and work is expected to pick up from 2018 onwards since oil majors have cut their capital expenditures, Mr Chew said.
As for the small vessels division, Ezion has warned of a substantial impairment. Some rigs, tugs and barges will have to be scrapped or stack.
"We were hoping the rates would recover this year but they did not... It's problematic," said Mr Chew.
https://www.straitstimes.com/business/ez...-bank-line
Also waiting in the wings is a strategic investor - an industry-based conglomerate - that is keen to work with Ezion, but wants to see the refinancing completed first.
Mr Chew Thiam Keng, Ezion's chief executive, told The Straits Times on Tuesday (Oct 3): "When we look at what they want to do, what they can do, we have a perfect fit. They are very big. I would say they are very gentle and genuine."
Ezion has a fleet of 14 liftboats, 20 rigs, and 45 small vessels. At present, seven liftboats and three rigs are deployed. Another six rigs are deployed but the contractors are not paying.
According to an illustration of cashflows presented by financial adviser RSM, Ezion could make a net cashflow of US$933 million over the next six years, based on current charter rates, which have fallen more than 50 per cent since 2014.
Mr Chew said: "Our liftboats are all new. The oldest is about seven years old, and the average age is two years. If God is willing, we should have all deployed by the middle of next year."
RSM assumed an 80 to 85 per cent liftboat utilisation rate in its illustration. Liftboats are used to maintain and repair production platforms in shallow-water oil fields, and work is expected to pick up from 2018 onwards since oil majors have cut their capital expenditures, Mr Chew said.
As for the small vessels division, Ezion has warned of a substantial impairment. Some rigs, tugs and barges will have to be scrapped or stack.
"We were hoping the rates would recover this year but they did not... It's problematic," said Mr Chew.