January 15, 2013 / 3:36 AM / 5 years ago

STOCKS NEWS SINGAPORE-OCBC downgrades Ezra to 'hold'

1 Min Read

OCBC Investment Research downgraded Ezra Holdings Ltd to 'hold' from 'buy' and kept the target price at S$1.30, after the offshore services firm reported weak quarterly earnings.

At 0329 GMT, Ezra shares were down 4 percent at S$1.20, but have gained around 5 percent since the start of the year, compared to the FTSE ST Oil & Gas Index's 1.8 percent rise.

Ezra's net profit for the three months ended November fell 49 percent to $6.8 million from a year ago, hurt by higher administration expenses and lower profits from associated companies.

OCBC estimates that Ezra's core net profit for the quarter was around $4.3 million, below its expectations and 16 percent lower than a year ago.

However, OCBC expects Ezra to see a pick-up in the second half of the year, as margins in the subsea business improve and as the division sees estimated new order wins of about $925 million in fiscal 2013.

1130 (0330 Gmt)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below