SINGAPORE (THE BUSINESS TIMES) - Ezion Holdings posted a net loss of US$224.5 million (S$298.4 million) for the third quarter ended Sept 30, widening from a net loss of US$71 million a year ago.

The struggling offshore and marine player's revenue shrank 79 per cent to US$5.2 million from US$24.7 million in the corresponding quarter of the previous year. Loss per share increased to 5.98 US cents from 1.91 US cents.

Ezion Holdings attributed the revenue drop to a decrease in the units owned, utilised and chartered for its jack-up rigs, and a decrease in utilisation rates for its liftboats. It has been unable to re-deploy its assets because of the Covid-19 pandemic and the plunge in oil prices, both of which have impacted demand for its vessels and rigs, the group said.

In addition, the group's secured lenders have indicated that they would prefer for the group to focus on vessel management with an asset-light structure, and divest its vessels. The updated impairment assessment in Q3 2020 resulted in the recognition of net impairment losses of US$214.4 million.

For the nine months ended Sept 30, net loss was US$462.6 million, increasing by 3.3 per cent from US$447.8 million in the previous year.

Revenue decreased by 68.7 per cent to US$24.1 million, and loss per share was 12.36 US cents, compared to loss per share of 12.02 US cents in the first nine months of the previous year.

Ezion Holdings said its ability to maintain as a going concern is highly dependent upon the successful restructuring of its business and capital structure to focus on vessel management and operating services with an asset light structure, as well as the continued support of the group's lenders to support a potential restructuring plan that would involve a debt to equity conversion of outstanding loans after the group disposes of its assets.

The Covid-19 pandemic's impact on the marine and offshore oil and gas sector and travel restrictions has caused delays in projects and maintenance programmes and hampered Ezion Holdings' efforts to obtain new business streams.

The group added: "The global slowdown in the industry will further impact the group's future utilisation and charter rates, and impede the transition of the group into a vessel and project management company."

Trading in Ezion shares has been voluntarily suspended since March 2019.