Ezion braces for hefty pullback in FY15 earnings

Low fossil fuel prices have made clients wary spenders.

Ezion Holdings has raised the alarm for net loss in its Q4 results, causing a sizeable pullback in its net profit for FY15.

According to OCBC, Ezion carried out an assessment on the impairment of its assets based on its intended deployment for non-oil and gas related activity. Though the value of the impairments are yet to be determined, Ezion sees a hefty fallback in its cards.

The company reasons in its announcement that the sustained depression of fossil fuel prices has pushed Ezion’s clients to further tighten their purse strings, even in the areas of operating expenditure related to extraction and production activities.

Until the company rolls out its unaudited FY15 financial results on 29 February, Ezion urges shareholders and investors to exercise caution when dealing with its shares.