Point Hope backs restructuring of Singapore's Emas Offshore

According to a filing, Point Hope and Singapore oil and gas industry supplier Baker Technology would each contribute $25 million. The investors will acquire a combined majority holding in the company on a fully diluted basis.

The refinancing, which remains subject to regulatory approvals, aims to deleverage the Emas balance sheet and strengthen its working capital position to enable it to continue as a going concern. Shares in the company were suspended in March at S$0.05 after falling almost 50% since January.

Founded in 1992, Emas offers a range of offshore oilfield services across the operational lifecycle, with a focus on Asia Pacific and west Africa. Revenue for the 2015 financial year was $247.2 million, down 13% on the prior year. Net profit increased from $27.5 million to $199.5 million during the year due largely to a US$154.7 million negative goodwill gain.

Earlier this year, the company postponed its reporting for 2016 citing going concern issues. However, it recorded revenue of $42.5 million for the first quarter of 2017, down 15% versus the same period last year. The decline was attributed to continual weakness in the offshore oil and gas industry leading to lower demand for offshore support vessels.

Last year, Emas sold an 80% stake in a Southeast Asia servicing oil tanker known as Lewek Emas to a joint venture controlled by private equity firm First Reserve. The deal included a $46.3 million cash component.

Point Hope invests middle-market companies across Asia, with a focus on philanthropy and education. 

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• Topics
• Southeast Asia
• Industrials
• Buyouts
• PIPEs
• Singapore
• energy
• resources