Ezra

Ezra: HSBC toured Ezra’s US$600m heavylift pipelay vessel Lewek Constellation as it was passing S’pore en route to the Netherlands for some final eqpt installation. The heavy lift crane has already been installed on the vessel and the vessel has undergone sea trials successfully, reducing the risk of execution and delays. HSBC believes the Constellation will be a game changer for Ezra’s capabilities in a space where growth is forecast to remain strong. Meanwhile, Ezra has completed integrating the operations of AMC and assets of Helix Offshore while investing heavily in building subsea technical bid capability, and is now able to win competitive subsea jobs. Ezra’s current backlog stands at US$1.2b. HSBC expects Ezra margins to improve materially. Reiterates Overweight with TP $1.33.