Shares of Singapore's Ezion Holdings (EZHL.SI) rose as much as 3.6% on Wednesday after announcing its joint venture with Buccaneer Energy had won a US$109.5 million ($138 million) contract to provide a jack-up rig for oil and gas activities in Alaska.
At 9:04 a.m., Ezion shares were up 2.9% at $0.71 on a volume of 2.8 million shares.
DMG & Partners Research said in a note that the news was positive and it saw upside potential to its earning per share estimate for Ezion's 2012 financial year. The brokerage maintained its buy rating on Ezion.
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Diversify your portfolio, invest in land and get a handsome return of 15-20%pa in 4 to 5 years.
where is it? http://www.youtube.com/watch?v=kMOvjDJeOuQ Msg(Contact) me here for details.
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921-940 of 1012
CIMB
06 Apr 2011
Singapore
Quick Takes
Ezion Holdings Limited [ PDF]
Alaskan adventure - by Yeo Zhi Bin
(EZI SP / EZHL.SI, OUTPERFORM - Maintained, S$0.69 - Tgt. S$1.07, Offshore & Marine)
Following an analysts' briefing this morning, we have a clearer picture of the earnings impact of Ezion's recent acquisition of a 50% stake (US$2.5m) in Buccaneer Energy's subsidiary, Kenai Offshore Ventures (see our note this morning, Moving into frontier drilling). We lift our FY11-13 earnings estimates by 3-6% to factor in the Kenai-JV. Also discussed were the capital structure and funding of the investment as well as Ezion's roles and responsibilities in the JV. Incorporating our earnings upgrade, we raise our target price to S$1.07 (from S$1.03), still based on 11x CY12 P/E (5-year small-mid-cap industrial average). This project reflects management's shareholders-centric approach. We continue to see stock catalysts from marine logistics work for Australian LNG projects and the on-schedule delivery of liftboats.
Ezion Holdings (EZI SP, $0.705, BUY, TP $0.99) – Ezion has signed a 50:50 joint venture agreement with ASX-listed Buccaneer Energy for a jackup rig to be operated in the Cook Inlet in Alaska. While the deal is expected to generate just $3-4m pa of additional earnings for Ezion over the next five years, it demonstrates Ezion’s position as one of the leading global players for liftboats, and the company can further capitalise on this. Maintain BUY and target price of $0.99.
0.715 broken huat liao 0.80 will come
ezion has many project on its pipeline.
for long term investor, i think this is a good bet.
slow and steady.
Ezion rises on $138m contract win |
| WRITTEN BY THOMSON REUTERS |
| WEDNESDAY, 06 APRIL 2011 10:13 |
Better take profit with this piece of good news. If not prices may come down after the effect. At the moment is already overbought.
zhixuen ( Date: 06-Apr-2011 08:45) Posted:
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Ezion Holdings Ltd announced that the company has signed a joint venture agreement with Buccaneer Energy Limited for the joint ownership of a jack-up rig with the Alaska Industrial Development and Export Authority. Pursuant to this agreement, Ezion holdings will acquire a 50.0% interest in a company known as Kenai Offshore Ventures, LLC, that has secured a contract worth USD 109.5 million to provide a jack-up rig to support the offshore oil and gas activities in the Cook Inlet in Alaska for 5 years. Ezion Holdings and Buccaneer Energy Limited will each provide US$2.5 million in shareholder’s equity into Kenai Offshore Ventures, LLC.
/sgx
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Diversify your portfolio, invest in land and get a handsome return of 15-20%pa in 4 to 5 years.
where is it? http://www.youtube.com/watch?v=kMOvjDJeOuQ Msg(Contact) me here for details.
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i think ezion worth trading at least for the next few days.
however market might be opening flat today with clue from USA and Europe.
Ezion 1st Target 0.77 then the next 0.84
gogogo
2 contracts total worth 220million USD for a small capital company is a extremely good news.
As long as US don't have big slump then Ezion is still worth to buy.
Technically Ezion being overbought.
Trade at own risk.
if tonight us and eu market ended in red... do u think still worth to buy up ezion ?
zhixuen ( Date: 05-Apr-2011 21:15) Posted:
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what a coincidence then 2012 would be the fruitful year for Ezion.
Then expecting the consolidation more than 1 year is going to breakout. HUAT AR!!
New123 ( Date: 05-Apr-2011 21:09) Posted:
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I think there are 2 diff contracts. One for lift boad and the 2nd is a Jack up rig.Co-incidentally same amount contract of 109.5m
zhixuen ( Date: 05-Apr-2011 21:01) Posted:
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I tot this has been announced on 24-Feb-2011.
Now is just a confirmation letter.
wow.tmr may see it prices shoot up to 72 cents..
EZION ENTERS INTO A JOINT VENTURE TO PROVIDE A JACK-UP RIG TO SUPPORT OIL & GAS ACTIVITIES IN ALASKA FOR A PERIOD OF 5 YEARS WITH A CONTRACT VALUE OF USD 109.5 MILLION
The Board of Directors of Ezion Holdings Limited (“ Ezion” the “ Company” or “ Group” ) is pleased to announce that the Company has signed a joint venture agreement (“ JV Agreement” ) with Buccaneer Energy Limited (“ Buccaneer” ), a company listed on the Australian Securities Exchange with its operations based in Houston, for the joint ownership of a jack-up rig with the Alaska Industrial Development and Export Authority (“ AIDEA” ).
Pursuant to the JV Agreement, Ezion will acquire a 50.0% interest in a company known as “ Kenai Offshore Ventures, LLC” (“ KOV” or “ JV Company” ) that is incorporated in Delaware and registered as a foreign domiciled company in the state of Alaska, USA. Ezion and Buccaneer will each provide US$2.5 million in shareholder’ s equity into KOV. Ezion’ s portion of the US$2.5 million will be funded through internal resources.
The JV Company has secured a contract worth USD 109.5 million to provide a jack-up rig to support the offshore oil and gas activities in the Cook Inlet in Alaska, USA for 5 years. The project which is expected to commence before the end of FY2011 has obtained the approval and support of the state of Alaska.
The abovementioned shareholder’ s equity contribution and charter is not expected to have a material impact on the Group’ s earnings per share or net tangible assets per share for the financial year ending 31st December 2011.
None of the Directors or substantial shareholders of the Company has any interest, directly or indirectly, in the abovementioned transactions, save for their shareholdings in the Company.
i also hope not.
I tot they had just raised fund recently by new preference share?
going to raise fund again?
rpires ( Date: 05-Apr-2011 11:24) Posted:
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my fear is they are going for share placement.
Maybe Keppel going to buy over Ezion with offer price $1.00
Contract win doesn't need to halt for 2 days gua.
larrysoon ( Date: 04-Apr-2011 17:26) Posted:
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