Ezra 1 (May 08 - Dec 09)

[winston]

short Ezra when market breaks?

No, PEG of 1 is a Hold. When PEG reaches 2, it is a Sell.

[Aspellian]

PE used in PEG is historical PE or Forward PE?

I have not looked into numbers - but Ezra's PE of 10 looks more like historical PE, so PEG of 1 is "inflated"...

Winston, what's your view on the usefulness of using PEG to buy or hold or short? I have not used PEG thus far (now remembered it from Peter Lynch's book)...

[winston]

Hi A,

I will answer your question above in a new thread titled, " Growth Stocks" filed in the Misc. Investment section.

Take care,
Winston

[millionairemind]

Published July 17, 2009

Ezra ventures into deepwater subsea segment

By JOYCE HOOI

WHERE still waters run deep, Ezra Holdings is hoping to make waves. Yesterday, the marine company unveiled its new strategy to expand into the deepwater subsea segment in a bid to tap new opportunities.

To that end, Ezra will be spending US$275 million on three subsea-capable vessels. This expansion will see Ezra venturing into deepwater subsea fields with water as deep as 3,000 metres, and is expected to pay off for Ezra by H2 of 2010.

'Globally, spending in the subsea segment is set to exceed half of the total spending in the offshore oil and gas sector over the next few years,' said its managing director, Lionel Lee.

Over the next five years, global expenditure on subsea equipment, drilling and completion - excluding that of Petrobras' - is expected to exceed US$80 billion, according to the World Deepwater Market Report cited by Ezra.

To streamline this foray into the subsea segment, Ezra will be placing its current energy services arm under the newly formed deepwater subsea division. It will be focusing on the South and North American markets, where potential for growth are the highest.

'The deepwater subsea segment's contribution is expected to grow as large as our offshore support services' segment is today,' said Tay Chin Kwang, Ezra's finance director, yesterday.

Currently, Ezra's offshore support segment's contribution to revenue stands at about 60 per cent, bringing in US$176.5 million during the group's FY2008.

In May, the group had announced the raising of $92.4 million from the placement of out 78 million new shares.

'This was raised as pre-emptive capital for opportunities that might arise sometime down the road,' said Mr Tay yesterday.

For the group's nine months ended May 31, it posted an 8 per cent increase in net profit to US$18.8 million, with an increase of 9 per cent in revenue.

Ezra's counter closed one cent lower to $1.28 in trading yesterday.

[Aspellian]

Ezra seeks growth from subsea venture

By Tan Hwee Hwee


Singapore listed Ezra Holdings is eyeing the next wave of growth in the subsea sector from the second half of 2010.

The offshore marine service provider expects to take delivery of the first of three subsea-capable vessels in the next 12 months. Two multi-functional support vessels (MFSVs) and a heavylift construction vessel are already on order and will be due for staggered deliveries in the first half of 2010 from Drydocks’ shipyard in Batam, Indonesia.

The two 30,000-bhp MFSVs are equipped with subsea crane and to provide remotely operated vehicle (ROV) support. The third vessel will be equipped with DP3, a 400-tonne crane and accommodation for 500 persons.

A deepwater subsea services unit has been set up in Houston to pursue contracts in well intervention, decommissioning, inspection, repairs and maintenance (IRM) and subsea, umbilicals, risers and flowlines (SURF) installations.

Talks are underway with ExxonMobil, BP and Petrobras for projects off West Africa, Gulf of Mexico and Brazil, according to Paul McKim, managing director of Ezra’s Houston outfit.

McKim said the vessels may be marketed at over $150,000 per day, although the final rate may vary depending on the work scope.

Ezra expects the deepwater subsea service unit would match the revenue from its offshore arm in the future. The offshore unit contributes 60% of Ezra’s $235 million revenue during the nine months ended 31 May 2009. Gross profit for the same period amounts to $73 million, up 43% from the same period last year.


--------------------------------------------------------------------------------
Friday, 17 July, 2009, 07:13 GMT | last updated: Monday, 20 July, 2009, 01:17 GMT

[Musicwhiz]

Dear all, I have discussed Ezra's next lap growth strategy on my blog. Please feel free to visit and comment, thanks !

[winston]

UBS reduced their stke in Ezra to 5.72% from 6.06%

Please check the SGX website for the latest insider's transactions

[Aspellian]

UBS reduced their stke in Ezra to 5.72% from 6.06%

Please check the SGX website for the latest insider's transactions

deja-vu similar to Swiber??? I remembered what happened when the funds dumped swiber's shares - $3.80 to $0.30 - oouchh!!

Food for thought:
- oil prices more stable
- ezra has new biz segments -deepwater --> all the way to US/Brazil - does it mean market here saturated?
- or ezra trying to eat more than it can digest? <i think have i have to go read musicwhiz's blog on his thoughts first>
- more capex going forward?
- growth has slowed?

take care

[Aspellian]

Prosafe looks to improved FPSO market
Staff and news wires

Norwegian offshore oil services provider Prosafe Production expects few new contracts this year, but looks forward to an improvement in demand for floating production vessels next year.

The floating production specialist posted operating profit of $28 million in the second quarter, up from $21 million a year ago and roughly in line with an average forecast of $30 million in a Reuters poll of analysts.

Second quarter profit was lifted by the start-up of Azurite floating drilling, production, storage and offloading unit (FDPSO) and Cidade de Sao Mateaus FPSO, but partially offset up a lower dayrate for Umuroa FPSO.

Prosafe expected low short-term market activity with "only a few contracts to be awarded in 2009", but also flagged possible improvement in demand next year with "more inquiries from oil companies lately".

The long-term outlook was positive, Prosafe Production said, with the oil price "at higher levels for a long period of time" and "deepwater drilling activity set to remain high for at least two or three more years."

It said competition in the FPSO market should be tough as projects end and free up FPSO capacity. In recent years there have also been 20 to 30 conversions of ships into FPSOs per year, Prosafe Production said, boosting supply.

"Competition for new projects likely to be strong in the short term," Prosafe Production said in a statement.


--------------------------------------------------------------------------------
Wednesday, 26 August, 2009, 07:05 GMT | last updated: Wednesday, 26 August, 2009, 07:05 GMT

[Musicwhiz]

Franky, I need more clarity on the VOA deal before I can conclude if it's good, bad or ugly....

DJ MARKET TALK: Ezra May Rise On New Vessel Operating Agreement

0040 GMT [Dow Jones] Ezra (5DN.SG) may rise on news of company sealing agreement with offshore specialist fund to operate four new anchor handling, towing & supply vessels without need for major capital investment. Deal entitles Ezra to half of profits earned from four vessels, which will be ready from 1Q10. As company usually buys vessels to lease out, deal won't require significant investment outlay as it'll only be managing the vessels on behalf of fund. "The firming up of the operating agreement now provides greater visibility as far as capacity expansion is concerned, which could provide some share price catalyst," says JPMorgan, which has Neutral call with S$1.00 target. But until contributions from deal start flowing through, upside for stock may be limited; closed down 1.3% at S$1.57 Friday, unlikely to clear year-to-date high of S$1.66. (FKH)