Ezion

Ezion: to lift halt at 11am. Ezion’s JV with Kim Seng Holdings has secured a contract with approx value of up to US$148.6m to provide a Service Rig over a 7 yr period to support the O&G activities of a national oil major in Central America. The Service Rig, which will be deployed in the Bay of Campeche is expected to be working in 3Q13. The JV will acquire and own the Service Rig to meet the requirements of the contract, and the acquisition will be funded through internal resources as well as bank borrowings. The same JV had, earlier in Nov ’12, secured a similar contract for 2 Service Rigs. The continued order momentum is positive for Ezion. The stock trades at 17.9x P/E, but narrows to 12.7x on consensus fwd basis, indicating strong potential earnings growth.