Ezra

Ezra: OSK DMG maintains a NEUTRAL rating, with TP of $1.15; On Ezra's 2QFY13 results, excluding oneoff gains from asset disposals and forex amounting to $32.9m, Ezra registered a net loss of $3.2m in 2QFY13. 1HFY13 revenue and core operating profit were 44% and 29% of DMG's below-consensus estimates but house expect an improvement in 2HFY13. Takeaways from results briefing: i) Utilisation of offshore support vessels (OSVs) was weak due to cabotage policy. 7-8 vessels were idle but are now back on charters; ii) Subsea fleet utilisation was also below expectations due to shift in clients’ schedules; iii) Positive subsea macro picture but hampered by delays in contract awards; and iv) Ezra announced USD120m new orders for subsea and OSVs.