Ezion clinches US$65m LOI for service rig

Deal is over a three-year period.

According to OCBC Investment Research, Ezion Holdings announced this morning that it has received a letter of intent with a contract value of up to about US$65m over a three-year period to provide a service rig for an oil major to support its oil & gas activities in SE Asia. 

Here's more:

The unit is expected to be deployed by late 3Q15, and will be funded through internal resources and borrowings, like Ezion’s earlier projects.

The group is in the process of forming a JV to order and own an additional service rig in conjunction with this project, and pending more details from management, we maintain our BUY rating and fair value estimate of S$2.90 on the stock.