Subsea backlog to grow with fleet expansion: YTD, Ezra
has received c.US$832mn of new orders, and subsea order
backlog of more than US$1.1bn (as at mid-April 2013). With
its current fleet of 9 subsea vessels, coupled with another 2
vessels (namely DP dual reeled-lay and Lewek
Constellation) in the pipeline, we believe Ezra is wellpositioned
to benefit from the growing demand in the
subsea market. Currently Ezra is bidding for c.US$5bn in
subsea orders. We estimate every US$100mn increase in
new subsea order win will add S$0.04-0.05 per share. Our
new subsea order estimates for FY13/14E are
US$1.0bn/US$1.4bn. Sustained margin expansion of its
Subsea division is also a key area to focus on.