Ezra

Ezra: Barclays expects Ezra to deliver the highest on-year earnings growth within its oil-services and rig-builders coverage on a subsea-segment uptick and utilization in its offshore-support segment. Says it prefers Ezra and Keppel Corp going into the results season; sees solid earnings growth and potential catalyst events, such as possible financing resolutions for Ezra and further contract awards for Keppel. Expects the sector's operating margins to be a key focus, forecasting Ezra's margins to improve sequentially, while Singapore rig-builders are expected to at least maintain theirs. Forecasts Ezra's fiscal 3Q12 net profit at US$19.7m, up ~ 200% on-year, with continued sub-sea margin improvement; expects gross profit margin at 23% vs 2Q12's 16% and 3Q11's 17%. Rates Ezra at Overweight with TP $1.70, Keppel at Equalweight with TP $13.30 and SembMarine at Overweight with TP $7.00.