Ezra sells half of subsea ops to Chiyoda

It will receive USD180m in the joint venture.

The offshore support provider is poised to reap both operational and financial gains from the partnership. As the joint venture means it now shares its operational risks with Chiyoda in equal parts, Ezra will also share half of its capital requirements of its USD2bn from its subsea projects.

According to analysts from RHB, the cash flow from the 50:50 JV will help reduce the group’s net gearing to 80%.

“This cash inflow is worth a full 78% of its market cap, and Ezra still owns the other 50% of AMC. It also owns 75% of EOL and 61% of Triyards,” RHB said.

“Ezra will book a small USD2m gain on the sale, which stands in stark contrast with the group’s current market valuation,” RHB added.