UOBKayhian on7 Nov 2014
FY14F PE (x): 8.6
FY15F PE (x): 7.0
Still ramping up. Ezion reported a net profit of S$49.2m for 3Q14 and S$139.9m for
9M14. 9M14 profit is 65% of our full-year forecast of S$215m. Three new service rigs
joined the fleet but only two units contributed to 3Q14 revenue and earnings. There was
no contribution from the third unit which is on charter in the Caspian sea to Petronas.
Management had earlier warned that there was some dispute over Ezion’s billings as
the unit was being fitted with the customer’s equipment and had not gone to work in the
oilfield.
Maintain BUY and target price of S$2.18 (ex 1-for-5 bonus issue), based on 11x 2015F
PE, or a 15% premium to the long-term (2004 to current) 1-year forward PE mean of
9.5x for the OSV-owner segment of the oilfield services sector
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