Ezra: 47% owned Olso-listed EOC has been awarded a contract worth up to US$20m from a "French oil major" to provide accommodation and support services for an offshore maintenance project in Africa for up to 24 mths (initial term of 8 mths + 4mth extension + 12mth extension)...
EOC expects vessel to add to earnings from start of 4QFYAug11. The co is also expecting a boost in earnings for 2HFY11 with another vessel scheduled to commence ops in 4Q from Vietnam's Chim Sao Field, and says its other vessels would also all be utilised "substantially" during the period...
CIMB highlights the OSV mkt has bottomed out after being in the doldrums for close to 2 yrs. Says since early 2011, global OSV operators have been noting a steady increase in new contracts and utilisation although day rates still stagnant. With rigs leading the cycle, support vessels are likely to be next.
Recent Street ratings at Buy/ Hold with TP btwn $1.45-2.20.
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