EMS Energy

EMS Energy: secured from its major shareholder, Koastal Industries, a contract worth US$36m to build a Derrick Equipment Set (DES) complete with full drilling equipment, for an offshore tender assisted drilling rig – its largest order secured to date. Delivery is slated over 18 mths. Financial recognition of the DES will commence from 4Q13 with the bulk of contributions and positive financial impact kicking in from FY14. EMS expects to secure two more DES of similar value over the next few mths, which would bring the total orders from Koastal to ~US$108m. Koastal, which provides engineering, procurement and construction mgt for offshore projects, has previously outsourced to EMS major equipment supplies for smaller AHTS vessels. EMS’ order book now stands at $67.8m vs 1H13 revenue of $3.8m (impacted by fewer significant projects secured).