Well-positioned to benefit from US$124bn subsea
capex: 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, 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.