CIMB is keeping its “add” call on Ezion Holdings but trimming its target price to 63 cents from 95 cents as it cut its earnings per share forecast for 2016 and 2017 by 55%-60%.
The offshore-services provider missed CIMB's 2015 net profit estimates for FY15.
Ezion is pushing capital expenditures to 2017-2018, delaying delivery of at least six rigs, notes CIMB, underscoring the company’s efforts to stay afloat as the oil price slump leads to a cut in investments by customers.
Debt levels are expected to stay the same in 2016.
CIMB expects Ezion's efforts to help generate positive free cash flow of about US$110 million ($153.8 million) in 2016 and US$60 million in 2017 and about US$138 million in 2018.
Ezion closed at 52 cents on Wednesday.
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The offshore-services provider missed CIMB's 2015 net profit estimates for FY15.
Ezion is pushing capital expenditures to 2017-2018, delaying delivery of at least six rigs, notes CIMB, underscoring the company’s efforts to stay afloat as the oil price slump leads to a cut in investments by customers.
Debt levels are expected to stay the same in 2016.
CIMB expects Ezion's efforts to help generate positive free cash flow of about US$110 million ($153.8 million) in 2016 and US$60 million in 2017 and about US$138 million in 2018.
Ezion closed at 52 cents on Wednesday.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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