Ezra 1 (May 08 - Dec 09)

[Aspellian]

not vested.
good luck to those holding. see whether Ezra can sail against the oncoming storm and emerged unscathed like capitaland and sembmarine.

not vested too ... and ouch
seems like ezra cant sail against the storm

seems like even stalwarts like capitaland and semb marine are finding the sea storming...
and the Dow has not yet have big down sessions (unlike Nasdaq in past few sessions)... see how STI reacts when US market wobbles hard.
at least now i have a couple of stocks on my watchlist when uptrend picks up again.

[Aspellian]

TOL: which acquisition/marriage is not special???

Ezra Holdings, the integrated support and marine services provider in the offshore oil & gas (O&G) sector, says it has acquired Intrepid Global Pte. Ltd. (IGPL), a company specialising in the execution of deepwater subsea projects. Ezra did not say how much the acquisition cost.

Managing Director Lionel Lee says: “This acquisition is of special significance as it enables us to continue building up our subsea track record and further deepen our ties with the oil majors. Led by Mr Akerblom, IGPL’s extensive experience in deepwater subsea installations will complement our current capabilities and propel us towards our vision of becoming an integrated offshore solutions provider.”


http://www.intrepid-global.com/index.php?q=services

Not much info though.
A Master Mariner with more than 25 years of experience in the offshore oil and gas industry, Ezra says Akerblom has a proven track record in planning, execution and management of offshore construction projects, particularly in the area of subsea installations.

Widely recognised for its expertise in deepwater subsea installations and its commitment to Health Safety Security and Environment, Ezra says IGPL brings with it valuable best practices that will help to boost the company’s standing with the super oil majors.

[Musicwhiz]

Actually what I am surprised with is Ezra's decision to pay part of the acquisition in shares (1,500,000), effectively giving the other party part ownership of the company. They are releasing the treasury shares as payment, as well as SGD 180,000 in payment.

The company's NTA is US$834,000, which is about S$1.1676 million if converted to SGD. Ezra are acquiring 90% of the company, meaning this is equivalent to NTA of about SGD 1.05 million.

Based on Ezra's last closing price of S$1.85 today, they would be paying S$2.775 million in shares and S$180,000 in cash, for a total of S$2.955 million. If you compare the numbers, Ezra is valuing this 90% stake at more than 2.8x NTA, which means they are paying a hefty premium for it.

Comments are welcome. I am not vested.

[iam802]

Maybe the expertise will help bring in bigger projects which they previously can't bid for?

Given the nature of the project... if they pay an extra $1M to $2M, what are the project size that it can help bring in ?

[winston]

Not vested. From OCBC:-

Ezra Holdings: Steady demand for offshore construction and production services

Summary: Demand for Ezra’s specialized construction and production vessels should continue to hold up as the global marine construction market is likely to remain tight in the near future, driven by the push for more pipeline and subsea equipment installation projects and maintenance of present infrastructure.

But AHTS charter rates are likely to continue to feel downward pressure for at least the first half next year as newbuild deliveries continue. We do note, however, that deliveries may slip as some are being delayed while others may get cancelled. Even if charter rates drop, Ezra’s long-term charters should help support earnings.

Ezra has positioned itself well in the recent downturn and we are optimistic of its ability to capitalize on emerging opportunities. We are raising our fair value estimate to S$2.40 (prev. S$2.27) as we peg EOC at 9x FY10F earnings as the first FPSO finally starts work after delays.

In addition, the accommodation and crane barge, Lewek Chancellor, has also secured a new time-charter contract shortly after completing a previous engagement, underlining the steady demand for offshore construction and production services. Maintain BUY. (Low Pei Han)