Ezion

The current price of 7.6 cents is trading at a steep discount as compare to the new issued share price of about 21 cents.

The company had just swing back to profit for 2nd quarter , looks like price may likely move up to retest 8 cents then 8.4 cents.

Breaking out of 8.4 cents with ease + good volume that may propel to drive the price Higher towards 9 then 9.6 cents

Not a call to buy or sell.

Please do your own due diligence.

the  proposed  allotment  and  issue  by  the  Company  of  96,153,000  new  ordinary shares  in  the  capital  of  the  Company  (the  “Shares”)  (the  “Subscription Shares”)  to  the  Subscriber  at  an  issue  price  of  S$0.208  per  Subscription  Share (the  “Proposed  Subscription”);  and 

STATEMENT  REVIEW 2Q18  vs  2Q17 The Group's revenue for the three months ended 30 June 2018 ("2Q18") decreased by US$44.3 million (65.7%) to US$23.1 million as compared to the corresponding three months ended 30 June 2017 ("2Q17"). The decrease in revenue  was  mainly  due  to: (i) (ii) (iii) (iv) continued delays in re-deployment of the Group's liftboats due to working capital constraints pending finalisation  of  the  refinancing  exercise  on  bank  borrowings; drop in utilisation rate of jack-up rigs and not recognising revenue when the Group has assessed that certain customers  are  not  able  to  meet  existing  charter  obligations; lower  utilisation  rates  of  the  Group's  tugs  and  barges;  and overall  reduction  in  charter  rates  across  the  Group’s  fleet  of  vessels. The cost of sales and servicing for 2Q18 decreased by US$26.7 million (43.9%) to US$34.0 million as compared to  2Q17,  largely  due  to  lower  depreciation  expenses  on  vessels. As a result of the above, the Group recorded a gross loss of US$10.9 million in 2Q18 from a gross profit of US$6.7 million  in  2Q17. The increase in other income in 2Q18 as compared to 2Q17 was mainly due to the strengthening of the United States Dollar against the Singapore Dollar as at 30 June 2018 and this resulted in foreign exchange gain on the Group's  Notes  Payable. The decrease in other operating expenses in 2Q18 as compared to 2Q17 was due to exchange loss incurred in 2Q17. The finance gain in 2Q18 as compared to finance costs in 2Q17 was mainly due to the fair value adjustments arising  from  the  refinancing  exercise  recorded  in  2Q18.

The lower share of associates and jointly controlled entities' losses in 2Q18 as compared to 2Q17 was mainly due to  lower  operating  losses  from  the  Group's  joint  ventures  and  associates. The  Group  generated  profit  before  income  tax  of  US$87.6  million  in  2Q18  as  a  result  of  all  the  above. Charter income derived from Singapore flagged vessels are exempted from tax under Section 13A of the Income Tax Act of Singapore. Current period income tax expense of US$0.7 million relates to the corporate tax expense and  withholding  tax  expense  incurred  by  vessels  operating  in  certain  overseas  waters.