Here’s why Ezion seems to be immune from waves buffeting its marine peers

It’s been surviving relatively well, say analysts.

Offshore and marine firms have been toughing it out this year, as low oil prices and investor flight from oil and gas related stocks have become constant headaches. However, while analysts say Ezion is not entirely bulletproof, it has been bending with the wind due to its resilience.

According to analysts from OCBC, on a fundamental basis, Ezion’s earnings have held up relatively well compared to its peers due to the more resilient nature of its business.

“The oil industry is aware that sustained delays or neglect in maintenance work will only impact future production, and has been most unwilling to cut back on this segment,” OCBC said.

Meanwhile, OCBC says Ezion’s liftboats and service rigs are also as a cost effective solution for the industry which struggling to cut back on costs.

OCBC adds that Ezion’s utilisation rate is also expected to be stable in the coming quarters, as it saw an 83% utilisation rate in 3Q15.

“Looking ahead, management expects utilisation rate to be generally stable; the risk on the bottom-line would be additional requirements and modifications from customers that incur capex. By the end of this year, the group expects five additional service rigs to be added to the fleet with another two removed, resulting in a net addition of three units,” OCBC said.