Ezion Holdings

A company which is mostly a speculative proxy play on oil price should not be considered on a valuation basis. It is just a gamble on the oil price going up.

If oil price back down, ur investment will be bye bye, this has potential to end like. Swiber..

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Agreed. This counter is not only speculative, Long Term wise is down trend therefore more losers especially retailers.

(10-10-2016, 05:04 AM)IBlueKelah Wrote: A company which is mostly a  speculative proxy play on oil price should not be considered on a valuation basis. It is just a gamble on the oil price going up.

If oil price back down, ur investment will be bye bye, this has potential to end like. Swiber..

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Ezion ($0.37) - It is definitely not just the oil px, but the whole market environment of how mkt value or price a stock. The company current worth at such economic environment would be determined by whether it is consider undervalued. Demand and supply then set in, determine the price direction - as evidence in last 2 days.

http://infopub.sgx.com/FileOpen/Ezion_Pr...eID=439700

Imo, we are creeping closer to the end of the oil crisis. True value of individual o&g assets on balance sheet will be reflected; it will show how leverage these companies are to their low cash generating assets.

It will be a time of massive deleveraging which may have reprecussions to the banking industry and retail bondholders.

(18-02-2017, 05:56 AM)CY09 Wrote: It will be a time of massive deleveraging which may have reprecussions to the banking industry and retail bondholders.

Who and how many out there would use their capital to buy big floating assets which cannot get regular charters and are rotting (or more like rusting) on the high sea ?  How many banks would still lend to buyers of such marine or O&G assets based on previous partial (say up to 70%) financing method backed by cash flow projections ?

The deleveraging process has been unusually tough and will continue like that unless oil price goes back up and stays on a sustained level. I guess only the lucky banks and bondholders with good charters on the underlying marine or O&G assets can expect to get back all their money.

(18-02-2017, 07:41 AM)dydx Wrote:

(18-02-2017, 05:56 AM)CY09 Wrote: It will be a time of massive deleveraging which may have reprecussions to the banking industry and retail bondholders.

Who and how many out there would use their capital to buy big floating assets which cannot get regular charters and are rotting (or more like rusting) on the high sea ?  How many banks would still lend to buyers of such marine or O&G assets based on previous partial (say up to 70%) financing method backed by cash flow projections ?

The deleveraging process has been unusually tough and will continue like that unless oil price goes back up and stays on a sustained level. I guess only the lucky banks and bondholders with good charters on the underlying marine or O&G assets can expect to get back all their money.

I'm just wondering why so many vessels like to refill n replenish their oil n ship provisions in Singapore sea. Anyone care to share more? Thanks

One of the dumbest announcement made, and possibly to do some rah rah

http://infopub.sgx.com/FileOpen/Ezion_An...eID=440358

If your bonds backed by DBS and is not getting Aa1 rating, I will be very worried.

The more pertinent issue is Ezion's weakening margin. As visible, its GPM has fallen. Post rights, Ezion's cash balance has maintained its resilience.
Ezion has made the comments that it is not experiencing any increased activity or charter rates from its clients despite the slight rise in oil price.

http://infopub.sgx.com/FileOpen/Ezion_FY...eID=440356

http://infopub.sgx.com/Apps?A=COW_CorpAn...100817.pdf

Ezion is considering more sale to the tune of USD $10 mil. This is probably to free up cash to repay debts

http://infopub.sgx.com/FileOpen/Ezion_An...eID=466398

http://infopub.sgx.com/FileOpen/Ezion_An...eID=445723

This is on top of the USD 70 mil it has raised from the completion of another sale. IMO, Ezion will have to do more sales to free up cash. It will be good if they can start selling (unwind) their assets to reduce its leveraged its balance sheets.

As of now, Ezion is probably the last few leveraged companies surviving in the oil& gas support industry. Let's see how long an it last through the prolonged winter. On a full year basis, the company is actually producing positive Ops Cashflow. The key is not to buy more PPE and then reduce its debts.

Ezion has requested for self suspension (before trading started) after releasing its 1H17 results earlier in the morning.

I personally think it is a good pre-emptive move as it is proceeding with discussions/work to "need to work together with all our stakeholders to discuss financing options". It removes much volatility (and anguish) for existing shareholders that may come as a result of confidential information leaks and speculations in general.

Letter to shareholders: http://infopub.sgx.com/FileOpen/Ezion_Le...eID=466831
1H17 results: http://infopub.sgx.com/FileOpen/Ezion_2Q...eID=466811

Might be stating the obvious here.

What ezion really has to do is to improve its cashflow by: 1) reducing on CAPEX and not ask banks for more money for CAPEX and 2) improve their trade receivables collection.

It is apparent Ezion is struggling on these both front. I am curious how much of its trade receivables is past due the 90 days.

Ezion too should consider scrapping some of its ageing fleets to free up cash instead of ploughing back into the market of depressed charter rates. The upfront cash gathered from scrapping might be worth it, after all the upfront cash can be used to pay down the principal which would otherwise translate to interest expense. Lastly, it should consider selling down its Ausgroup stake