EZRA

EZRA: Annouced that its deepwater subsea services arm (EMAS AMC) is racing off to a promising start as the new yr unfolds with the completion of Ezra’s acquisition of Aker Marine Contractors AS (AMC) and the award of a new contract from Norway’s Statoil estimated at approximately US$41m….

Contract with Statoil will involve EMAS AMC supplying and installing 55km of power cables along with associated terminations and ancillaries for the Gudrun field in the North Sea. State-of-the-art multipurpose construction vessel, AMC Connector, will be used for this project when it commences in the 3Q FY13…..

On back of contract win, DMG maintains Buy with $2.40 TP, tipping win the beginning of a new exciting chapter. View contract announcement positively and see FY11 as a transition year for Ezra to integrate AMC and build the backlog orders and FY12 is the yr where earnings are set to show strong growth due to higher deployment of assets building a solid order backlog that will optimise utilisation of fleet and other assets.