Ezra Holdings: Ezra’s gross profit declined by 30% YoY to US$45.6m (US$65.4m in 3QFY14), despite only a marginal revenue decline of 3% over the same period. Management attributes the weakness in the current quarter’s gross-profit margin (a 4.6pp YoY decline) to its subsea and offshore support divisions. Weakness in the offshore support division is expected to persist until at least 2H16 due to supply/demand imbalance.
Ezra’s backlog fell from US$2.3b in 2QFY15 to US$2b in 3QFY15. The company is actively tendering for subsea projects worth US$8.5b, with the bulk likely to be announced in 2016, for execution in 2019.
Net gearing level remains high at 1.2x as at 31 May.
Latest broker ratings:
Daiwa reiterates its UNDERPERFORM rating with a reduced TP: $0.14 (prev: $0.35)
CIMB also maintains its REDUCE rating with TP: $0.12
No comments:
Post a Comment