Ezion pockets just $3 from sale of stacked rig trio

Singapore’s Ezion Holdings has moved to offload three jackup rigs which have not been able to find work.

Atlantic Tiburon 1, Atlantic Tiburon 2 and Atlantic Tiburon 3 have been sold to Mexican company TK and HR Services S.A. de C.V. for a cash consideration of $3. The buyer will also take on liabilities of around $659k associated with the rigs.

While the rigs have an asset value of around $2.91m, Ezion says the scrap value of $1.1m is insufficient to cover the costs required to scrap the rigs and settle liabilities relating to them which is approximately $600k and $659k respectively.

Ezion says it expects to incur a loss on the disposal of $2.25m.

“The group is of the view that the proposed disposal is in line with the group’s plan to reduce burn rates of the service rigs that are currently not deployed, and this will enable the group to improve the efficient use of its capital and cash flow,” Ezion stated.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
Back to top button