Ezra 1 (May 08 - Dec 09)

[winston]

Not vested.

Ezra’s Oslo-listed associate, EOC Ltd, announced that it has been awarded a new contract worth US$11.2m for its heavy lift accommodation pipelay barge, the Lewek Champion. This contract is expected to be executed in 1Q 2010, and will commence immediately after it completes its current work in Malaysia, thereby extending the visibility of revenue stream from this asset.

Maintain Buy; TP: S$2.20. Ezra’s FY09 results will be released on Thursday, 15 Oct.

Source: DBSV

[winston]

Not vested.

EZRA - CLSA maintained its "buy" rating on oil-rig maker Ezra Holdings, saying the stock could benefit from more contract orders.

"We believe the $152 million in new contracts announced last month is just the beginning of a series of new deals," it said in a client note late on Wednesday.

Source: Reuters

[Aspellian]

Ezra today again "out-performed" on the downside compared to the market. but at least its on lower volume. interesting to see how its results is like and how market respond to it.

[Musicwhiz]

Ezra today again "out-performed" on the downside compared to the market. but at least its on lower volume. interesting to see how its results is like and how market respond to it.

The results should be fine. Anyway they are historical. The problem with financial statements is that they always represent the rear-view mirror.

What's more important are their plans moving forward and their prospects.

[Aspellian]

Ezra today again "out-performed" on the downside compared to the market. but at least its on lower volume. interesting to see how its results is like and how market respond to it.

The results should be fine. Anyway they are historical. The problem with financial statements is that they always represent the rear-view mirror.

What's more important are their plans moving forward and their prospects.

agree - ezra is always innovative and flexible in this volatile industry - which can be an assuring point.

[millionairemind]

October 15, 2009, 5.47 pm (Singapore time)

Ezra's Q4 net profit surges

By JAMIE LEE

Ezra Holdings posted fourth quarter net profit that was more than four times of earnings posted a year ago, due to absence of non-recurring losses registered in the previous year.

Ezra said net profit for the three months ended August 31, 2009, rose to US$27.1 million from US$6.59 million a year ago.

The company recorded operating income of US$6.12 milion in the fourth quarter, reversing from a US$9.86 million operating expenses in the same period a year ago.

Quarterly revenue fell 22 per cent to US$93.5 million from US$119 million.

The company proposed a dividend of 1.5 Singapore cents per share.

[winston]

Not vested

EZRA HOLDINGS J.P.Morgan lifted its recommendation on oil service company Ezra Holdings to overweight from neutral and raised its target price to S$2.40 from S$1.00.

Source: Reuters

[Aspellian]

Company also buys shipset at distressed prices to operate in Arctic regionBy JAMIE LEE
EZRA Holdings yesterday posted a more than quadrupling in net profit to US$27.1 million for its fourth quarter ended Aug 31, 2009, from a restated US$6.59 million for the previous corresponding period.

The Q4 results were helped by a net 'other operating income' of US$6.1 million - a reversal from net 'other operating expenses' of US$9.86 million for the preceding year's comparative period - higher gross profit margins and a US$4.5 million fall in administrative expenses.

Separately, Ezra said that it has bought a shipset - originally priced at US$100 million - at 'distressed prices', which would allow the marine services group to operate in the Arctic region.

Q4 revenue fell 22 per cent to US$93.5 million from US$119 million a year earlier.

But for the full-year, net profit plunged 60 per cent to US$70.1 million from a restated US$175 million.

This translates to earnings per share of 11.7 US cents, down from 30.2 US cents posted a year ago.

Contributing to this were net 'other operating expenses' of US$6.2 million, against net 'other operating income' of US$138 million for the preceding year. This was mainly due to the non-recurring loss of US$10 million in deposit refunds from the termination of shipbuilding contracts in fiscal 2009 and the non-recurring gain of US$146 million from the disposal of interest in a subsidiary in fiscal 2008.

The company's full-year gross profit was 27 per cent higher at US$101 million, lifted by stronger sales.

Ezra proposed a final dividend of 1.5 Singapore cents per share.

Venturing into the Arctic region, Ezra has also bought all the equipment, engines and thrusters from the Ice Maiden project at an undisclosed price. The 2007 project - which has an investment value of US$100 million, Lloyd's List showed - was tied to a Shell contract for the Gannet and Shearwater oilfields to execute deepwater subsea work in the North Sea. The project was abandoned the next year.

Managing director Lionel Lee said that because such vessels are few, they command a 'considerable premium' in charter rates.

Shares of Ezra fell one cent to end at $1.97 yesterday.

[Aspellian]

Not vested - TOL - Ezra expanding in turbulent times - can be consider a good move. so far things look rosy for Ezra. I do not see (could be biased and myopic view - therefore i need to search deeper) any major bad things.

- Admin costs savings - may not be sustainable
- Revenue dropped - but as MW explained for this industry, its due to timing on booking/completion of contracts
- GP margin up - a good sign (but i wonder why or from where)
- Artic vessel - an interesting revenue stream - North sea has always been an active E&P area - quite a number of E&P activities as many companies expanded too fast during 2007/2008 - and caught with huge debts - demand for oil and gas is high in north sea because of depleting resources to feed Europe.
- new contracts continue to come in - slow, but better than many other players of talk and no action (eg. swiber - yes, i am biased again)

- but recent price/vol action not too favorable - weak action when market is up - always a concern.

[winston]

Not vested. From DBS:-

Ezra’s FY09 results beat our and consensus’ forecasts. DBS Research is raising FY10 numbers to capture faster orderbook recognition. We continue to expect potential catalysts for the group in the coming months, including:
1) Higher charter rates for contracts renewal,
2) charter contracts for upcoming vessel deliveries,
3) more fleet management contracts update, and
4) the long awaited final acceptance of EOC’s FPSO by PTTEP, which management guides to be soon.

Maintain BUY, TP raised S$ 2.35 (Prev S$ 2.20).