Singapore-based Ezra Holdings Limited (Ezra), an integrated offshore support and marine services provider, is proactively reviewing its orderbook of five multi-functional support vessels (MFSVs) in view of the uncertainty arising from the current financial crisis.
The first of its 30,000 brake horsepower MFSV options to come under review is
Ezra?s most recent order with Keppel Singmarine Pte Ltd. The newbuild contract, valued at S$69 million, excluding the cost of certain owner-furnished equipment, was placed in May with delivery expected in 2010. Said Ezra?s Managing Director, Lionel Lee: "Just as we have always exercised caution in the past, we are taking a prudent approach by revisiting our capital expenditure plans and exploring our options, even though relevant financing for this vessel has been secured."
"We are positive about our medium-term prospects as enquiries for offshore support
vessel charters remain firm. The Group will continue to strengthen its financial position, and will focus on consolidating our integrated solutions approach to become Asia?s leading offshore support services supplier to the oil & gas sector."
Meanwhile, Keppel Offshore & Marine Limited (Keppel O&M) has received indications from Seadrill Limited, Scorpion Offshore Ltd, and Lewek Shipping Pte Ltd that they are reviewing their options on their newbuilding contracts that were signed in the middle of this year.
The contracts under review are for a semisubmersible for Scorpion Offshore, two jackup rigs for Seadrill and a Multi-Functional Support Vessel for Lewek Shipping.
Keppel O&M is in talks with them to arrive at mutually acceptable arrangements for these contracts. Construction work has not started on these projects, for which Keppel O&M has received down-payments.
Keppel O&M has a strong orderbook of about $12.5 billion extending through to 2012 and its contracts are cash-flow positive.
