Ezion

Ezion: 2Q10 results within expectations. Earnings were up 305% to S$16.5m, which included a gain of partial sale of its first liftboat worth S$7.5m. Excluding this, net profit was still up 136%, on the back of a 56% increase in revenue. Drivers were revenues from the liftboats, as well as better pricing from the ballastable vessels. The Gorgon JV also ramped up its earnings contributions…

Ezion also announced a new A$70m letter of intent with an oil major (Chevron) to provide marine logistics work. This will be carried out through its JV parntership which had earlier secured it’s a$350m logistics supply contract in Gorgon. We still expect more contract wins and corporate developments from Ezion over the coming months. KE maintains Buy and target of $0.99.