Will Ezion finally see an earnings uptick in Q3?

Its wind farm project might be very timely.

Better days may come for Ezion this 3Q16, thanks to the deployment of its Atlantic Amsterdam Unit #8 in the North Sea for a 16-month contract for DONG Energy UK. The contract is for an offshore wind farm installation project. It’s a welcome change according to analysts, especially as it’ll come after Ezion’s earnings slumped starting 2Q15 due to oil and gas (O&G) downturns.

According to UOB Kay Hian analyst Foo Zhi Wei, "The earlier-than-expected deployment adds a month of earnings contribution from the unit. Assuming that the working status of the 17 units remains unchanged in 2Q16, and no other surprise expenses, a qoq earnings improvement might be seen.”

He noted that the rig was on-site and has been in operation already since August 27.

More so, Foo added that Ezion is decoupling from oil and gas downturn with offshore wind farm installation.

"Management has been nimble with its strategy, venturing into the wind farm industry to mitigate the downturn," the analyst stressed.

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