Ezion

Ezion: Ezion secured a 3+1+1-year contract worth US$82.1m to provide a liftboat to a Southeast Asian-based national oil company. CIMB see the contract as a fairly standard one, but underscores its growth expectations for the company. Dilution is minimal and not immediate for the redeemable exchangeable preference shares. On the flip side, the cost of capital for the project could be higher vs. its usual debt/equity structure, especially given Ezion’s trailing P/E. Additionally, CIMB sensed a greater willingness by management to gear up its balance sheet during an analyst briefing. Management also shared that development for its Australian marine supply base is right on track. CIMB expect the upcoming 2Q13 results (7 Aug) to meet its estimate of US$28m. House maintain OUTPERFORM and TP of $2.56.