Ezra

Ezra: Ezra was awarded several contracts worth an aggregate US$110m. Its subsea services division, EMAS AMC, clinched a SURF type offshore installation project for a national oil company which operates in the Gulf of Mexico, as well as a pipeline repair works project for an oil major operating in Asia. Both projects are scheduled to commence by the end of 2013. In addition, its offshore support services division, EMAS Marine, had been awarded three new charters, with an average tenure of 3.5 years (including options), from a national oil company and oil major in South East Asia for two AHTS vessels and a PSV. After the release of its 4QFYAug13 results last week, majority of the street kept their Sell/Hold rating on the company despite a turnaround in profitability in the subsea segment, mainly due to the continued scepticism on Ezra's execution abilities, as well as its rich valuations. At the current price of $1.29, Ezra trades at a rather steep consensus FY14 P/E of 18.6x, compared to global subsea peers average of 12.6x. Latest broker ratings as follows: Deutsche maintain Sell with TP $1.00 (from $0.70) DBSV upgraded to Hold with TP $1.34 (from $0.90) OSK DMG maintain Sell with TP $0.75 (from $0.70) Phillip Securities maintain Neutral with TP $1.18 (from $1.00) UOB KayHian maintain Hold with TP $1.25 (from $1.07) CIMB maintain Underperform with TP $1.00 (from $0.70) StanChart maintain In-Line with TP $1.15 (from $1.20)