Ezra

Ezra: Management cited three macro positives at DB's recent corporate day: 1) Oil production moving from conventional onshore/shallow-water fields to offshore developments; 2) Fundamentals positive for offshore development across Ezra’s key geographies; and 3) significant capex in offshore infrastructure up to 2018. Although capex performance across the industry has been poor and the emergence of unconventional forms of energy (shale/tight oil) may shift attention away from offshore development. Ezra is currently bidding for about US$9b worth of contracts and it appears optimistic on its ability to win. 1QFY14 order backlog stood at about US$2b. DB maintains HOLD with $1.00 TP.