Idle liftboats impact Ezion’s profitability prospects

The vessels will be inactive until Q4.

Ezion’s yards were bogged down by six idle liftboats in the second quarter, which increased costs and impacted the group’s bottom line.

RHB Research said that these six units underwent repairs, upgrades, and dry dock inspection (RUDDI) and will only return to service by 4Q15.

To keep costs in check, Ezion has morphed its strategy by swapping its available units between clients in order to respond to strong customer demands for higher-specification units.

Seven units will be affected by the rotation, which may lead to utilisation gaps in 2Q15-3Q15.

"The upside is revenue visibility – two such contracts are for five years with two more optional years – which points to strong and continuous demand for liftboats," a report from RHB said.