Ezion bags a US$116.8m contract with SE Asian corp

One unit of liftboat is set to be completed in 2014.

Ezion Holdings announced that it has secured a letter of intent from a SE Asian state-linked corporation for the charter of one unit of liftboat over a four-year period with an approximate contract value of up to US$116.8m.

The liftboat is expected to be deployed in SE Asia upon its completion at end 2014, and the charter is likely to commence in 1Q15.

According to OCBC Investment Research, confirmation of this contract would further lengthen the group’s earnings visibility. “We will have more details after an analyst briefing this morning. For now, we maintain our BUY rating on the stock and S$2.05 fair value estimate on Ezion.”