Ezion’s FY15 earnings crash 83.6% to $51.7m

Absence of contributions from Australia projects weakened revenue.

Ezion closed FY15 with disappointing results as net profits plummeted 83.6% YoY to US$36.8m, or about $51.7m. The company said its revenue received zero contributions from its Queensland projects.

According to a report by OCBC, Ezion’s Q4 is marked with revenue dropping 19% YoY to US$84.8m, with net loss for the quarter coming in at US$63.5m. This pullback is a result of US$81.1m worth of impairment losses on plant and equipment, as well as provision of trade receivables.

Meanwhile, Ezion has proposed a bonus issue of up to 323.9m free warrants with each warrant carrying the right to subscribe for one new share within four years from issuance date at an exercise price of $0.50. The warrants will be allotted to shareholders on the basis of one warrant for every five existing shares as at book closure date.

Assuming all warrants are exercised, Ezion stands to rake in gross proceeds of about $161.97m.