Ezra Holdings reported a 22% YoY rise in revenue to US$147.4m but saw a net loss of US$7.8m in 4QFY15, compared to a net profit of US$11.0m in 4FY14. As Ezra will be selling its 50% stake in its subsea business to Chiyoda, certain subsidiaries and associated companies related to the subsea division have been classified as discontinued operations.

In 4QFY15, net loss from discontinued operations was US$16.7m vs net profit of US$18.2m in 4QFY14, while net profit from continuing operations was US$8.9m vs net loss of US$7.1m in 4QFY14. This set of results was again below expectations, but the group looks forward to a brighter future for its subsea division given its partnership with a new strategic partner.

Pending an analyst briefing later, we maintain our HOLD rating but put our fair value estimate of S$0.16 under review.

Source: OCBC Research - 23 Oct 2015