Singapore's Ezra says may write down $170 mln in subsea JV

Ezra Holdings

03/02/2017 04:10

SINGAPORE, Feb 3 (Reuters) - Singapore's Ezra Holdings Ltd 
 EZRA.SI  said it may have to take a $170 million writedown on 
its subsea services joint venture, putting further pressure on 
the oilfield services firm as it tries to restructure to remain 
in business. 
    "The company's investment in, shareholders loan to and the 
inter-company balances owed by the EMAS Chiyoda Subsea Group 
amounts to $170 million and the full amount may have to be 
written down after the company's assessment," Ezra said in a 
stock exchange filing Friday.  
    It reiterated that it was reviewing all options to 
restructure its businesses, operations and balance sheet and 
would be faced with a "going concern issue" if it did not 
achieve a favourable and timely outcome.  
    Ezra recorded a net current liability position of $887.2 
million for the financial year ended Aug. 31, 2016. 
    Ezra, one of the city-state's many oilfield service firms 
hit by a challenging market, holds a 40 percent stake in EMAS 
Chiyoda Subsea. Ezra's share price has collapsed over the last 
few years and was at S$0.045 a share before trading was halted 
on Wednesday, versus a peak of S$2.13 in 2007. 
    Earlier this week, Chiyoda Corp  6366.T  said it expects 
risks and expenses of 38 billion yen ($338 million) from its 35 
percent stake in the joint venture, while Nippon Yusen Kaisha 
(NYK)  9101.T , which own a 25 percent stake, wrote down 13 
billion yen. 
    ($1 = 112.7700 yen) 
 
 (Reporting by Aradhana Aravindan; Editing by Richard Pullin) 
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659; Reuters 
Messaging: aradhana.aravindan.thomsonreuters.com@reuters.net)) 
 
Keywords: EZRA HLDGS OUTLOOK/