Ezra Holdings

[camelking]

FYI, Ezra did try to launch a perpetual at more than 7% late last yr. Mkt was bad then so issue failed. Never rule out another one.

They would probably attempt it again, hence my " ". Since the perps will be accounted for as equity rather than debt, it will lower their gearing as it will increase their equity base - an ingenious way of telling the market hey look we have reduced our gearing. Total gross debt remains the same though, they are just tweaking around with the denominator.Perps act somewhat like preference shares, in that coupons must be paid on perps before ordinary shareholders can receive dividends. It is also similar in the sense that there is a fixed rate of payment. Good thing is that there is no fixed tenure for redemption of the perps, but this also means investors have to be compensated with a higher coupon rate.

Two words : Bank covenants

[camelking]

Anybody read the latest announcement by Ezra?
It seems that DBS is the shareholder now...and there are shares lending by majority shareholders to DBS.... I am a bit confused by the announcement.

[Musicwhiz]

The journalist should take a closer look at the numbers. There was a US$34m exceptional gain from sale of AFS investments in 2Q 2012. If not for this, 2Q 2012 would have seen an operating loss! Gross margins also fell and debt levels have risen, plus yet again, no FCF was generated. I guess press releases are only supposed to highlight the positives eh?

The Straits Times
Apr 13, 2012
companies
Ezra Holdings' Q2 profit up 117%

By Gan Yu Jia

ROBUST returns from its subsea service projects, offshore support work and joint ventures helped marine firm Ezra Holdings boost second-quarter profit by 117 per cent.

Earnings for the three months to Feb 29 came in at US$22.1 million (S$27.7 million), up from US$8 million last year, while revenue shot up 114 per cent to US$211.8 million.

First-half net profits were US$35.4 million, a 66 per cent rise from US$21.3 million last year.

Revenue was ahead 124 per cent, from US$174.8 million last year to US$392.3 million.

This was mainly due to larger contributions from its units providing support services to subsea and offshore projects. These offset a decline in revenues from the marine services unit.

Ezra said it expects earnings to rise further in this half of the year as it executes its subsea order book in excess of US$1 billion.

Managing director Lionel Lee said in a statement: 'We will continue to focus on leveraging our integrated services to deliver long-term value to our shareholders.'

Earnings per share in the first half rose to 4.1 US cents as of Feb 29 from 2.76 US cents last year, while net asset value per share improved from 98.03 US cents as of Aug 31 last year to 101.59 US cents.

Ezra shares fell 0.5 cent to $1.12 yesterday.

[greengiraffe]

The main reason there is the existence of VB forum means the media is just for reporting while a forum is for like minded to discuss and explore the subject matter in greater details.

EZRA is a big caveat emptor. $ will never be enough and the possibility of another perpetual issue remains even after recent placement.

For offshore plays, go for the best in Kep Corp and Semb Marine, the rest are (pests?)

The journalist should take a closer look at the numbers. There was a US$34m exceptional gain from sale of AFS investments in 2Q 2012. If not for this, 2Q 2012 would have seen an operating loss! Gross margins also fell and debt levels have risen, plus yet again, no FCF was generated. I guess press releases are only supposed to highlight the positives eh?

The Straits Times
Apr 13, 2012
companies
Ezra Holdings' Q2 profit up 117%

By Gan Yu Jia

ROBUST returns from its subsea service projects, offshore support work and joint ventures helped marine firm Ezra Holdings boost second-quarter profit by 117 per cent.

Earnings for the three months to Feb 29 came in at US$22.1 million (S$27.7 million), up from US$8 million last year, while revenue shot up 114 per cent to US$211.8 million.

First-half net profits were US$35.4 million, a 66 per cent rise from US$21.3 million last year.

Revenue was ahead 124 per cent, from US$174.8 million last year to US$392.3 million.

This was mainly due to larger contributions from its units providing support services to subsea and offshore projects. These offset a decline in revenues from the marine services unit.

Ezra said it expects earnings to rise further in this half of the year as it executes its subsea order book in excess of US$1 billion.

Managing director Lionel Lee said in a statement: 'We will continue to focus on leveraging our integrated services to deliver long-term value to our shareholders.'

Earnings per share in the first half rose to 4.1 US cents as of Feb 29 from 2.76 US cents last year, while net asset value per share improved from 98.03 US cents as of Aug 31 last year to 101.59 US cents.

Ezra shares fell 0.5 cent to $1.12 yesterday.

[camelking]

Don't even touch it

[Musicwhiz]

Published April 13, 2012
Ezra's Q2 profit almost trebles to US$22.1m

Revenue more than doubles to US$211.8m; H1 earnings jump 66%

By Joyce Hooi

Ezra Holdings almost tripled its net profit for its second quarter ended Feb 29, 2012, from US$7.9 million to US$22.1 million, as revenue skyrocketed and a one-off gain on disposal padded the bottom line.

For the same period, revenue more than doubled, from US$98.8 million to US$211.8 million.

Its subsea services division led the gain in revenue for the quarter, mostly in the form of sales contribution from Emas AMC, which grew by US$102.1 million.

"The investment in Aker Marine Contractors (AMC), back in March 2011, is now paying off. We will continue to focus on leveraging our integrated services to deliver long-term value to our shareholders," said Lionel Lee, Ezra's managing director.

The group's offshore support services division also saw a boost in revenue of US$14.3 million, which was attributed to several months of operations of its five platform supply vessels and three anchor handling tug and supply vessels.

Its marine services division, however, saw revenue lower by US$3.4 million, because of lower revenue being recognised for engineering projects in Vietnam that are in different stages of completion compared to those in the corresponding period a year ago.

During the quarter, the group also made a one-off gain of US$34.8 million from its disposal of available-for-sale investments.

For the first half of FY 2012, Ezra saw net profit jump 66 per cent to US$35.4 million, also against the backdrop of a surge in sales, which more than doubled to US$392.3 million.

Even as net and gross profit swelled, the group's gross profit margin for the six months fell from 31 per cent in H1 2011 to 18 per cent in H1 2012.

This was attributed primarily to higher repair and maintenance costs that were incurred for off-hire vessels. The inclusion of Emas AMC's contribution also changed the sales mix and lowered the gross profit margin, the group said.

"Ezra not only expects its subsea construction fleet to be well utilised but also, its earnings from EMAS AMC to increase in the second half of FY2012, in line with its previous projections, as it continues to execute on its subsea order book in excess of US$1 billion," the group added.

The group's earnings per share for the six-month period stood at 4.10 US cents, up from 2.76 US cents for the same period a year ago.

Ezra yesterday closed at $1.12, down half a cent. It called a halt to trading before it released its financial results.

[Musicwhiz]

Ezra will be releasing its 3Q 2012 results this evening.

EOC has already released its results. Gross loss for 3Q 2012 and net loss for 9M 2012. BS has de-geared slightly though.

(Not Vested)

[Musicwhiz]

*For the full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Aug 28, 2012
Free Triyards shares for Ezra investors
Listing plans for offshore contractor's unit do not feature an IPO

By melissa tan

OFFSHORE contractor Ezra Holdings aims to reward its shareholders as part of a planned separate listing of its engineering and fabrication arm.

Existing shareholders will get one Triyards Holdings share for every 10 Ezra shares they hold, if the plan goes through.

Triyards was last Friday granted conditional eligibility to list on the Singapore Exchange's mainboard, Ezra said yesterday.

The unit specialises in making self-elevating units and platforms, offshore support vessels and specialised offshore equipment.

Triyards is being spun off using a method known as an introduction. This means Ezra will distribute Triyards shares by way of dividend "in specie", Ezra said in a statement.

In other words, existing shareholders will receive shares in the newly listed company in proportion to their holdings. This method of distribution means that no initial public offering is necessary.

Ezra will distribute 33 per cent of Triyards' issued ordinary shares to Ezra shareholders, on the basis of one Triyards share for every 10 Ezra shares held.

This amounts to up to 107.2 million ordinary shares.

Ezra said that the introduction would allow its shareholders to own and receive returns from Triyards shares without any additional cash outlay.

"The company would not be similarly able to reward entitled shareholders if Triyards were to seek a listing by way of an initial public offering," it noted.

The proposed distribution is subject to the approval of Ezra shareholders at an extraordinary general meeting to be held later.

If it gets the green light, Ezra will hold a majority stake of 67 per cent of Triyards.

"The proposed listing of Triyards shows Ezra's confidence in our established track record in shipbuilding, offshore platform and subsea module fabrication to take advantage of new opportunities out there," said Mr Lionel Lee, managing director of Ezra.

He added that the spin-off would let Ezra continue to focus on its subsea and offshore support services divisions but still benefit from Triyards' growth and geographical expansion.

Triyards operates out of three yard facilities: two in Vietnam and one in the United States.
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[godjira1]

Honestly whats the shareholder value being generated by this spinoff? I dont understand.

[Musicwhiz]

The "Value" is in Triyards being able to raise money on its own, moving forward; instead of relying on Ezra (which is already super heavily geared).

*For the full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Sep 04, 2012
Ezra unit plans to list in mid-October
Listing to follow distribution of 33% of Triyards stock to Ezra investors

By Jonathan Kwok

THE fabrication and engineering arm of Ezra Holdings aims to list around the middle of next month after a distribution of some of its stock to shareholders of the parent.

About 33 per cent of Triyards Holdings will be distributed to Ezra shareholders as a dividend in specie.

The listing will be by way of introduction, after investors get one Triyards Holdings share for every 10 Ezra shares they hold.

Ezra will retain about 67 per cent of the company at the listing.

Investors who do not hold Ezra stock can buy Triyards shares only from the open market after the listing.

Ezra released the introductory document for Triyards on Saturday. The document said that after the spin-off of Triyards, the company and the rest of Ezra "will be analysed and valued on their own respective merits, risks and strategies".

The separation will provide "financial independence" and make it easier for the companies to access capital to fund growth.

Ezra will "continue to participate in the growth of the engineering and fabrication business" with its holding of about 67 per cent of Triyards after the restructuring and distribution, said the document.

Triyards has two shipyards in Vietnam and a crane fabrication yard in the American city of Houston. It builds vessels, offshore platforms and equipment like cranes for the offshore energy sector.

It recorded net profit of US$8.5 million (S$10.6 million) for the 12 months to Aug 31 last year, down from US$27.4 million in the 2010 financial year. Revenue rose last year, but so did the cost of sales and administrative expenses.

Earnings per share for the 2011 financial year was 2.87 US cents, down from 9.29 US cents for the 2010 financial year.

Net profit for the six months to Feb 29 was US$14.5 million, reversing a loss of US$1.1 million for the same period a year earlier.

Triyards shares will be traded in board lots of 1,000. But it will ask the Singapore Exchange to set up a temporary counter for trading in board lots of 100, to last for one month from the listing date.

This is for Ezra shareholders who get odd lots allocated to them.
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