Ezion

Ezion: 1Q14 results were within expectations although this was 20% of Maybank KE and consensus forecasts. Excluding one off disposal gain from Offshore Marine Services Alliance booked in 1Q13, 1Q14 saw 61.6% spike in net profit to $45.2m, while revenue was 72.3% at $94.4m, on the back of the deployment of additional service rigs. Maybank KE expects stronger performance in subsequent quarters as more liftboats are expected to contribute. Maybank KE estimates 19 liftboat units contributed to 1Q14 (4Q13:17, 1Q13:10). 4 liftboat projects are expected to be delayed, but of that 2 of them could potentially end up with higher charter rates, compensating fro the loss revenue from the delays. Separately, it has announced that it has secured a charter contract worth ~US$63.9m over 5 years to support an oil major in the Middle East, which Maybank KE expects will be financed by loans, and should yield a profit of US$2.1m p.a. Ezion currently trades at annualized 1Q14 P/E of 15.2x Maybank KE maintains Buy with TP $2.70 Philip Securities maintains Accumulate with slightly lower TP of $2.53 from $2.57