Building a solid base (DBS)

•

strengthening ties FY13/14F lifted 6-7%Repeat business from Pemex underscores

• Mr. Tan Boy Tee unveiled as strategic partner and coinvestor

• 3Q12 in line 4Q should be sequentially stronger

• BUY maintained TP raised to S$1.82

Repeat business from Pemex indicates strengthening

relationship FY13/14F lifted 6-7%.

another pair of service rig contracts from Pemex worth

US$298m over a 7-year period. This will be executed via a

50/50 JV with Kim Seng Holdings, implying limited impact to

Ezion’s balance sheet. These rigs will add US$10.3m/year to

Ezion’s earnings and lift our FY13/14F by 7%/6%.Ezion has announced

New strategic partner.

veteran, Mr. Tan Boy Tee, as its strategic partner. Mr. Tan, an

existing Ezion shareholder, will subscribe for 10m new shares

and concurrently acquire another 10m Ezion shares from

Ezion’s CEO. Dilution from this exercise is only a mere 1.2%,

while Ezion shareholders will stand to gain from his vast

industry experience and his ability to co-fund future projects

with Ezion.Separately, Ezion unveiled industry

3Q12 results in line.

core net profit +24% y-o-y /+8% q-o-q to US$16.1m. This

was on the back of the deployment of two additional liftboat

and service rig as compared to 3Q11, and the commencement

of the QCLNG project during the period.Ezion’s 3Q12 results were in line, with

Maintain BUY, TP raised to S$1.82.

S$1.82 on higher FY13F earnings and adjusting for marginal

dilution from the proposed new share issuance to Mr. Tan.

Maintain BUY as Ezion continues to execute well and deliver

on earnings. With Mr. Tan now roped in as a strategic

partner and co-investor, we see a greater possibility for Ezion

to undertake more projects without significantly stretching its

balance sheet further.Our TP is raised to