Ezion

Ezion: following last week’s announcement, to lease another land site (36ha) in Northern Territory of Australia for the development of a second marine supply base to support the offshore oil and gas industry in the vicinity. Similar to the first marine base in NW Australia, Ezion is adopting the model of rolling out basic engineering and developmental work for the second base expected to be completed in 12months, after which it is expected to be able to provide its basic load out and lay down services to its customers. The resulting cashflow will then fund further capex. The project is not expected to have a material impact on earnings for FY1010. We are still positive on Ezion, and expect further newsflow to be a positive catalyst on the stock price. Maintain Buy, TP S$0.99.