Ezion

Ezion: Good 3Q12 results which were inline, with annualized 9M12 bottom-line on track to exceed FY12 consensus estimates. Rev at $38.6m, +21.1% yoy and +4% qoq, while net profit at $16.1m, +24.4% yoy and -42.7% qoq. Drop in QoQ bottomline was largely due to a one-off gain via sales and lease back in 2Q12. Gross margins at 48.2% vs 49.7% yoy. Increase in yoy rev was mainly due to the chartering contribution from the deployment of an additional unit of the Group's multi-purpose self-propelled jack-up rig (Liftboat) and a unit of Jack-up Rig (cService Rigs) and higher contribution from the offshore logistic support vessels services with the commencement of the QCLNG project. Bottom-line was boosted by lower other operating expenses due to lower impairment loss and higher gain in foreign exchange as compared to corresponding period Going forward, grp expect more assets to be deployed in 4Q12, these include Liftboats and Jack-up Rigs (ServiceRigs) and expect to enjoy higher rev from Aus with the commencement of the QCLNG project in 4Q12. Grp will continue to pursue business opportunities to support LNG related projects in Aus and its vicinities and focus on investment in Service Rigs to meet strong demand. Separately, grp announced that has entered into a JV with Kim Seng Holdings and the JV has secured contracts with an approximate value of up to US$298m to provide 2 Service Rigs over a 7 yr period to support the O&G activities of a national oil major in Central America.