Ezion Holdings

https://www.businesstimes.com.sg/compani...-china-sea

Quote:EZION Holdings said on Wednesday night that one of the liftboats owned by its joint venture company Teras Lyza Pte Ltd had capsized in the South China Sea on Tuesday.

The unmanned Teras Lyza was being dead towed from Vung Tau, Vietnam to Taichung, Taiwanwhen it developed a sudden list to the stern at about 4.30 pm on Tuesday, and subsequentlycapsized, Ezion said. 

Teras Lyza is still floating upside down and a towing tug, Teras Eden, continues to standby at location with a view to ensure safety of navigation and to look out for any potential pollution as Teras Lyza was carrying 75cbm of marine gas oil.

There has been no report of injuries or casualties arising from the incident, Ezion added.

Teras Lyza is fully insured so Ezion does not expect any material negative impact on its financial results for the year ending Dec 31, it said. Ezion is also currently in talks with the insurers.

Although there is no contractual obligation on the delivery of Teras Lyza for its potential job, thegroup will be looking at hiring in and/or building a replacement vessel, Ezion said.

Could be blessing in disguise if lifeboat is not in demand in present depressing market ?

(07-06-2018, 06:06 AM)tonylim Wrote: Could be blessing in disguise if lifeboat is not in demand in present depressing market ?

I would think so...might as well get insurance claim...may be better off.

So far 65.8% of series B bonds have been converted by 06 June .

http://www.ezionholdings.com/?p=section&...iclepk=166

(08-06-2018, 09:57 AM)tonylim Wrote: So far 65.8% of series B bonds have been converted by 06 June .

http://www.ezionholdings.com/?p=section&...iclepk=166

 
The percentage of  B Bond conversion as at  08 June remained the same as 06 June.
The conversion is getting lesser by each day , closer to 13 June .

The Board of Directors of Ezion Holdings Limited (the “Company”, and together with its
subsidiaries, the “Group”) is pleased to announce that it has entered into a joint venture
agreement (“JV Agreement”) through its wholly-owned subsidiary, Teras Investments Pte Ltd
(“Ezion”), with Alliance Offshore Group Ltd, a wholly-owned subsidiary of TSC Group Holdings
Limited (“TSC”) to cooperate in the ownership and operations of Liftboats, with the aim to become
the world’s largest owner and operator of Liftboats.

Pursuant to the JV Agreement, a joint venture company known as Renergy Offshore Pte. Ltd. (“JV
Co”) had been established in Singapore. The JV Co currently has an issued and paid-up capital of
SGD100.00 with the intention to increase to approximately US$4,000,000, whereby TSC and
Ezion owned 51% and 49% equity stake in the JV Co respectively. Accordingly, the JV Co is now
an indirect associated company of Ezion.
TSC will provide necessary assistance to the JV Co to obtain the capital required for the
acquisition of new Liftboats and working capital. Ezion will assist the JV Co in the marketing and
operations of the Liftboats.
TSC is approximately 52% indirectly-owned by China Merchants & Great Wall Ocean Strategy &
Technology Fund (L.P.)
The above mentioned investment was funded through internal resources. The investment and JV
Agreement are not expected to have a material impact on the Group’s earnings per share or net
tangible assets per share for the financial year ending 31st December 2018.
None of the Directors or substantial shareholders of the Company has any interest, directly or
indirectly, in the above mentioned transaction, save for their shareholdings in the Company.


http://infopub.sgx.com/Apps?A=COW_CorpAn...11121c2ec5

(05-07-2018, 09:31 AM)tonylim Wrote: The Board of Directors of Ezion Holdings Limited (the “Company”, and together with its
subsidiaries, the “Group”) is pleased to announce that it has entered into a joint venture
agreement (“JV Agreement”) through its wholly-owned subsidiary, Teras Investments Pte Ltd
(“Ezion”), with Alliance Offshore Group Ltd, a wholly-owned subsidiary of TSC Group Holdings
Limited (“TSC”) to cooperate in the ownership and operations of Liftboats, with the aim to become
the world’s largest owner and operator of Liftboats.

Pursuant to the JV Agreement, a joint venture company known as Renergy Offshore Pte. Ltd. (“JV
Co”) had been established in Singapore. The JV Co currently has an issued and paid-up capital of
SGD100.00 with the intention to increase to approximately US$4,000,000, whereby TSC and
Ezion owned 51% and 49% equity stake in the JV Co respectively. Accordingly, the JV Co is now
an indirect associated company of Ezion.
TSC will provide necessary assistance to the JV Co to obtain the capital required for the
acquisition of new Liftboats and working capital. Ezion will assist the JV Co in the marketing and
operations of the Liftboats.
TSC is approximately 52% indirectly-owned by China Merchants & Great Wall Ocean Strategy &
Technology Fund (L.P.)
The above mentioned investment was funded through internal resources. The investment and JV
Agreement are not expected to have a material impact on the Group’s earnings per share or net
tangible assets per share for the financial year ending 31st December 2018.
None of the Directors or substantial shareholders of the Company has any interest, directly or
indirectly, in the above mentioned transaction, save for their shareholdings in the Company.


http://infopub.sgx.com/Apps?A=COW_CorpAn...11121c2ec5

Still want to buy new Liftboats when existing ones are not fully deployed ?

ROBERT Kuok-backed PACC Offshore Services Holdings (POSH) has joined a line of Singapore-based offshore and marine (O&M) players seeking to get in on billions of dollars in contracts from Taiwan's promising offshore wind market.

Observers have cautioned, however, against O&M players getting their hopes up over filling the order book gap from slower oilfield services demand. Getting into the market would mean treading a fine line between meeting bottomline objectives and matching Taiwan's local content aspirations.

For starters, offshore wind is an adjacent market where offshore and marine (O&M) assets - offshore support vessels, liftboats and yards to name a few - can be deployed to execute projects.

The arrival of offshore wind in North Asia is welcome news to O&M players still struggling to digest vast overcapacity towards the tail-end of a prolonged downturn triggered by the 2014 oil price collapse.

SEE ALSO: Relearning the ropes
They have their eyes on Taiwan, the second-fastest-growing offshore wind market after China, which Wood Mackenzie values at S$23 billion from 2019 to 2023.

Taiwan is deemed more attractive than China because it is more open to imports of foreign technology and expertise to make up for what its nascent sector needs but does not have.

To date, Enterprise Singapore has already been working with over 20 Singapore companies pursuing offshore wind opportunities in Taiwan and the larger North Asia region, Ho Chi Bao, director for precision engineering, marine & offshore and engineering services, told The Business Times.

UOB Kay Hian analyst Foo Zhi Wei named Ezion Holdings, Atlantic Navigation and Baker Technology as potential contenders for wind turbine installation work. OSV-focused players like Pacific Radiance, Marco Polo Marine, POSH and Mermaid Maritime can provide support for projects under construction.

Industry players stand to bolster fleet utilisation on clinching contracts from offshore wind developments, he said. POSH has estimated for instance, that one-third of its fleet, or about 40 vessels, can work in offshore wind projects.

Yard operators can tender for fabrication work on offshore wind towers. Additionally, they can look to orders for crew transfer vessels and service operations vessels that have to be purpose-built for operations and maintenance of offshore wind farms.

One industry veteran pointed to enquiries for construction of a new generation of offshore wind jack-ups as being of interest to Keppel O&M and Sembcorp Marine. Such newbuild jack-ups can cost in excess of US$200 million apiece, he said.

While asset utilisation is likely to be a top priority, POSH deputy CEO Lee Keng Lin said it is imperative for service providers to keep up with changes in the energy market. Oil majors - Shell, Total and Statoil, now renamed Equinor - as key clients of O&M players have ventured into renewables, he said.

Still, offshore wind is not new and North-west Europe, as the most mature market for this renewable energy, already has an established value chain in place. But it is not viable to transport mega wind structures over great distances. That means the offshore wind value chain, unlike that for oil and gas, is far more "regional" than "global".

Enterprise Singapore said in this respect, the good standing Singapore's O&M sector enjoys in Taiwan would give industry players here a headstart in breaking into the offshore wind industry there.

In addition, said Bernard Yee, director of legal firm, Resource Law LLC, Singapore companies can leverage on the long-standing bilateral ties between the Republic and Taiwan. "Singapore was Taiwan's sixth largest international trade partner in 2017 … and the only one in South-east Asia that has a free trade agreement with Taiwan."

Singapore Inc has, in fact, established a foothold in Taiwan's offshore wind market.

Murray Bowler, Baker McKenzie senior consultant in Taipei office, said Yushan Energy, part of Singapore's Enterprize Energy, has won development rights for offshore wind projects in Taiwan.

Baker McKenzie partner Tiffany Huang said DBS has also participated in NT$18.7 billion (S$833 million), 16-year project financing extended to Taiwan's Formosa 1 offshore wind farm.

But Enterprise Singapore also flagged two challenges: competition from experienced European wind players and Taiwan's local content aspirations, or its expressed interest to build domestic wind industries.

Wood Mackenzie senior analyst, Robert Liew concurred, noting that while Taiwan did not mandate any local content requirement, its Phase 1 projects with total 3.8 gigawatts (GW) of offshore wind capacity were "approved based on a scoring criteria that has higher weighting for using local content".

Yushan Energy and its Canadian partner, Northland Power, have contracted Semco Maritime for engineering work, but this has to involve participation of local players. This sheds light on POSH's motivation for a partnership with Taiwan-listed Kerry TJ Logistics last Thursday.

Ms Huang of Baker McKenzie said Taiwan's local content policy extends to three key aspects: local cooperation in engineering, design, construction and installation; local industry development plan or cooperation in operations and maintenance; and participation of local financial institutions. These were considered during the allocation of the Phase 1 projects mentioned above.

The indications are that selected developers could do with some help in delivering pledged local content towards their projects.

Reed Smith partner Bree Miechel noted teething problems even with Taiwan being a pro-foreign direct investment jurisdiction: "Developers are finding the timeframe tight with actual local content requirements ambiguous and open to interpretation. They are unsure, for example, whether simply contracting with a Taiwanese entity that subcontracts part of the works to foreign parties, will be adequate."

Singapore O&M players have a lot of ground to cover before they can fulfill their offshore wind ambitions.

Marco Polo Marine chief executive Sean Lee said the best way forward is perhaps to embrace the "Qiao Yi Qiao" attitude Taiwanese take and be open to adjusting to the evolving demands of the operating and regulatory environment.

Turned around in 2Q18 , mainly due to Net finance gain after fair value adjustments.

http://infopub.sgx.com/FileOpen/Ezion_2Q...eID=520816


The Group generated profit before income tax of US$87.6 million in 2Q18 as a result of all the above

Business wise for Q2 Ezion didn't do well at all. In fact, it has worsened despite the successful business restructuring.

If we were to negate the fair value gains, the group is still making a loss 5 Million USD loss this quarter. This is worse than the same period quarter results of 2017. The company cites the reason that restructuring has not been finalized during Q2 which led to the late deployment of lift boats. So logically in Q3, we should see Ezion return to profitability because it has (i) working capital which were given to them in 2 July 2018 and (ii) Lower financing cost due to the restructuring. Run out of reasons to attribute to poor performance of Ezion

One interesting fact is that the management has pushed its forecast that its fleet of liftboats will be fully deployed in the first half of 2019. This is unlike what he had said during AGM and earlier forecast that hopefully all the lift boats will be deployed in 2018. Shows that business sentiments in the oil support industry is not as rosy as it looks.