Ezion Holdings announced last evening that it has carried out an assessment on the impairment of its assets based on their intended deployment for non-oil and gas related activity, and while the value of the impairments are yet to be determined, it is expected that the group’s 4Q15 financial results will show a net loss, causing net profit in FY15 to see a significant decline.

Meanwhile, the group has also entered into a JV with a Chinese SOE for the deployment of its service rigs to support the offshore windfarm market. Ezion will be announcing its results on 29 Feb 2016. Maintain HOLD with S$0.56 fair value estimate under review.

Source: OCBC Research - 23 Feb 2016