Towards Financial Freedom
Ezion - Strong Growth Momentum Intact
Ezion reported strong 1Q13 core net profit of USD28.4m, up +102% y-o-y and +40% q-o-q due to additional service rigs and liftboats and ramp up of logistics services for LNG projects in Australia. We maintain our FY13-14F EPS. Re-iterate BUY with an unchanged TP at SGD2.48 based on 16x FY13 core P/E. Ezion remains one of our regional top picks for its strong EPS growth and undemanding valuation.
- Earnings in-line with expectations. 1Q13 net profit of USD46.2m included a USD17.8m gain from the disposal of OMSA to Pacific Basin.
Excluding the one-off gain, core net profit rose to USD28.4m (+102 % yo- y), amounting to 22% of our forecast. The higher net profit came from additional deployment of liftboats and service rigs and ramp-up of logistic services for LNG projects in Australia. Operating cash flow of USD29.4m was strong and net gearing rose to 0.83x versus 0.76x in 4Q12. - Growing fleet size to drive earnings growth. As of 1Q13, Ezion has 12 liftboats and service rigs on charters. The company will add three units in 2Q13 and seven more in 2H13, bringing year end 2013 fleet size to 22 unit. 1Q13 saw additional one month contribution from a unit deployed in the North Sea and contribution from two rigs (1.5 months each) chartered in the Gulf of Mexico under the joint venture with Kim Seng.
Source: RHB
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
