Struggling Singapore-listed Ezion Holdings has postponed taking four service rigs indefinitely in a move that it says will save it $270m in capital expenditure. The company cited “the continued challenges faced by the marine and offshore oil and gas industry” as rationale to conserve the cash position of the group.
Ezion ordered the service rigs for contracts it had won in 2014 in both Southeast Asia and the Middle East. It did not reveal whether these contracts will still be fulfilled.
Moreover, Ezion has revealed it has completed discussions with all its bankers to reduce its net annual principal repayment to match the group’s operating cash flows. In addition, Ezion has renewed its working capital facilities with all its principal bankers.
