Singapore-listed oil and gas player Ezion Holdings (Ezion) says it will likely post losses of approximately $1 billion in financial performance for the fourth quarter ended 31 December 2017 (4Q2017) and full year ended 31 December 2017 (FY2017) due to a prolonged downturn in the oil & gas sector.
Ezion started refinancing exercise with various stakeholders to alleviate cashflow challenges, but continued to experience delayed payment from its clients; it has also experienced delays in re-deployment of some of its assets.
Overall, the oversupply of offshore logistics vessels and jack-up rigs in the industry has resulted in lower charter rates and depressed the market value of Ezion’s assets, it says.
The decreased gross profit margins and cash flow has adversely affected its business, financial condition, operations and prospects.
“In line with financial year closing, the group carried out an impairment assessment of its assets based on their intended use,” it notes.
“Preliminary numbers show that net cash generated from operating activities for the group in 4Q2017 and FY2017 amount to approximately USD20 million and USD64 million respectively.
“However, despite being operationally cashflow positive, the group is likely to record a net loss of approximately of approximately USD1 billion for both for 4Q2017 and FY2017, largely attributable to the impairment losses of approximately US$900 million.”
Ezion will announce its unaudited consolidated financial results for 4Q2017 and FY2017 on 28 March 2018.
Photo credit: Ezion Holdings
Published: 26 March, 2018
U.S. Claims Register Summary recorded a total USD 833 million claim from a total 180 creditors against O.W. Bunker USA, according to the creditor list seen by Singapore bunkering publication Manifold Times.
Glencore purchased fuel through Straits Pinnacle which contracted supply from Unicious Energy. Contaminated HSFO was loaded at Khor Fakkan port and shipped to a FSU in Tanjong Pelepas, Malaysia to be further blended.
Individuals were employees of surveying companies engaged by Shell to inspect the volume of oil loaded onto the vessels which Shell supplied oil to; they allegedly accepted bribes totalling at least USD 213,000.
MPA preliminary investigations revealed that the affected marine fuel was supplied by Glencore Singapore Pte Ltd who later sold part of the same cargo to PetroChina International (Singapore) Pte Ltd.
‘MPA had immediately contacted the relevant bunker suppliers to take necessary steps to ensure that the relevant batch of fuel was no longer supplied. Further investigations are currently on-going,’ it informs.
Juandi bin Pungot spent SGD 3.4 million of his criminal benefits on amongst others, cars, luxury watches, and properties, according to documents seen by Singapore bunkering publication Manifold Times.