Ezra Holdings eyes US$5b subsea orders

Its subsea order backlog hit over US$1.1b.

According to Phillip Securities Research, currently Ezra is bidding for c.US$5bn in subsea orders. Phillip Securities Research estimates every US$100mn increase in new subsea order win will add S$0.04-0.05 per share.

Here's more:

Our new subsea order estimates for FY13/14E are US$1.0bn/US$1.4bn. Sustained margin expansion of its Subsea division is also a key area to focus on.

YTD, Ezra has received c.US$832mn of new orders, and subsea order backlog of more than US$1.1bn (as at mid-April 2013). With its current fleet of 9 subsea vessels, coupled with another 2 vessels (namely DP dual reeled-lay and Lewek Constellation) in the pipeline, we believe Ezra is wellpositioned to benefit from the growing demand in the subsea market.

With global subsea hardware capex estimated to double to US$124bn over the next 5 years compared to the prior 5-year period (according to industry consultant Douglas-Westwood), we believe Ezra is well-positioned to benefit from the upbeat subsea market.

This is especially after the AMC acquisition in 2011, which (i) enhanced its global subsea installation / construction capabilities, (ii) expanded its presence to high growth regions (North Sea, GoM, Brazil and Africa), and (iii) broadened its existing client base. We estimate Subsea division will account for c.64% of Ezra’s revenues by FY14E.

Also Read

Shell pipeline leaks oil into Singapore’s Bukom Island

Changi Airport Group unveils three faster vessels for sea rescues

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit