Ezion Holdings one of the Asia largest fleet in 'Ballastable vessel or Lift vessels" has recently just announced LOI worth 70 Millions.
The company is expected to post more than 100% growth in year 2010.
The Group's revenue for the three months ended 30 September 2010 ("3Q10") increased by $25.0 million (120.7%) to $45.7 million as compared to the corresponding three months of 2009 ("3Q09").
This was due mainly to:-
i) the contribution from the chartering of the Group's multi-purpose self-propelled jack-up rigs;
ii) the deployment of vessels to our joint venture company in Australia in support of the Gorgon gas field in Australia; and
iii) the marine services of about $11 million provided in relation to the Gorgon project.
As a result of the increase in revenue, the Group's gross profit rose by $8.6 million (109.8%) to $16.4 million (3Q09: $7.8million).
The company has also made announcement on 13th October 2010 that it has gone into
JOINT VENTURE WITH BBC CHARTERING &LOGISTIC GMBH &CO. KG FOR THE
OWNERSHIP OF A VESSEL; AND CHARTER OF THE VESSEL TO BBC FOR
AN APPROXIMATE VALUE OF USD 28 MILLION OVER A 6-YEAR PERIOD.
This contract is however not expected to have a material impact on the
Group’s earnings per share or net tangible assets per share for the financial year 2010 but are certainly going to boost the revenue for 2011.
The vessel will be used mainly for the haulage of cargos that are required
by the Oil & Gas industry in Australia and Papua New Guinea from the United States of America.
This is being viewed as a positive development as estimated more vessels might be needed for the same deployment of the similar cargoes for the same trade routes and hence forth more contracts and revenues for further growth.
Ocbc has a price target of 82 cents, Dbs - 86 cents and Cimb - 98 cents.
Currently the price is 68.5 cents.
I think is good to accumulate some when the price has come down to 66 cents.
It has an upside potential of about 19 - 30 %.
N.B
(Invest at your own decision)
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