Ezion

Ezion: has secured a charter contract with value of ~US$48.2m over a 3 yr period to provide a service rig to be used by an international oil company to support its oil & gas activities in the Arabian Gulf. The service rig is expected to be deployed before the end of 2013, after its refurbishment and upgrading. The project will be funded through internal resources as well as bank borrowings. The latest order brings Ezion’s YTD orders to US$290m, with the recent flow of order announcements boding well for Ezion’s earnings stream. The stock trades 16.4x P/E, which narrows to 11.8x based on forward earnings, a reflection of the counter’s high growth prospects. The stock is a Street favorite, with 11 recent Buy calls with TP btwn $2.15 – 2.38. Ezion has yet to announce resumption of share trading.