CIMB Research has raised its target price for Singapore oil and gas services firm Ezion Holdings (EZHL.SI) to $1.22 from $1.16 and kept its outperform rating.
CIMB has raised its earnings estimates to account for Ezion’s new contract win worth US$73 million ($90.3 million) to supply an accommodation jack-up rig to a European oil major.
CIMB has raised its earnings estimates to account for Ezion’s new contract win worth US$73 million ($90.3 million) to supply an accommodation jack-up rig to a European oil major.
The brokerage noted that with Ezion’s core liftboat business facing competition and limited growth prospects, management has decided to pursue near-term earnings growth through other projects.
“Although rig conversion jobs would appear to mark a diversification from Ezion’s core liftboats business, we note that there are synergies between the lifeboat and rig conversion businesses as expertise required is similar,” said CIMB in a report.
At 9:35 a.m., shares of Ezion were 1.6% higher at $0.655. They have fallen about 7.8% since the start of the year.
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