Ezion swings into a net loss of $3.5m

It has seen a drop in the utilisation rate of its service rigs.

Ezion Holdings saw a 19.5% fall in revenue to US$67.4m ($91.6m) and a net loss of US$2.6m($3.5m) in the past quarter.

According to the group, this is due to the reduction of charter rates as well as the drop in the utilisation rate of the group's multi-purpose self-propelled jack-up rigs and jack-up rigs.

The group was also badgered by the further depression in the utilisation rate of its offshore support vessels.

Meanwhile, OCBC Investment Research said the group is in discussions with stakeholders
such as bank lenders and creditors in relation to its financing and capital structure and is also taking steps to review its options to strengthen its financial position and preserve value.

"In anticipation of having to reach out to a larger group of stakeholders, the board has recommended that the trading of the shares be suspended with immediate effect. Given the dynamic situation the company is in, the board believes that this would ensure that no person is trading in the shares without sufficient information that is required to enable him or her to make an informed decision," analyst Low Pei Han said.

The analyst added, "A trading suspension would also provide market certainty as Ezion continues to explore financing options and engage in discussions with stakeholders."