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Sembmarine
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qtrinity
Senior |
01-Nov-2017 13:27
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This $2.00 will only last a few days.  Going to plunge back to 1.60-1.65 | ||||
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spore1
Supreme |
01-Nov-2017 12:36
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If you can't beat them so what would you do ?
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crazy_fave
Senior |
01-Nov-2017 12:10
Yells: "crazy_fave" |
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crazy_fave
Senior |
01-Nov-2017 12:09
Yells: "crazy_fave" |
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S$2.00 | ||||
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spore1
Supreme |
01-Nov-2017 11:39
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Seems like mkt like the news
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stlimst
Master |
01-Nov-2017 10:15
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Know what? Whats the answer?
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spore1
Supreme |
01-Nov-2017 08:25
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If u talk to someone from the finance side u will know the ans ..
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lennon1986
Member |
31-Oct-2017 21:54
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Considered gd, at this point of time at least net profit is +ve! | ||||
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spore1
Supreme |
31-Oct-2017 21:28
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Tmr jialet ! Likely to see selling down pressure | ||||
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ysh2006
Supreme |
31-Oct-2017 20:47
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No good loh. ..
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Secret_Squirrel
Elite |
31-Oct-2017 18:59
Yells: "Stay curious but skeptical" |
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Results just out. CEO message provide quite good insight.   All these can be found at SGX website
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michaeltan
Master |
31-Oct-2017 14:23
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Keppel - KOM unit announced 9 months ended 30th sept 2017 at loss 11million. What is your expectation for Semcorp Marine today after market closed? I guess the recent positive announcement will only impact the full financial year.  
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sgtrader18
Veteran |
16-Oct-2017 20:59
Yells: "dont buy if you cant lose - i'm no shortist, i'm a realist." |
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agree the deal was very power! 
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michaeltan
Master |
16-Oct-2017 16:03
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I believe the transaction will significantly improve the liquidity position of the Company and help strengthen its ability to offer quality solutions to customers, ride through the current cycle trough and be well-positioned for the industry&rsquo s recovery. If you look at the finance costs of the company, the loan interest payment or finance costs for the 1st H 2017 recorded close to 49million. It is expecting to hit more than 100million if the rigs will remain unsold. Furthermore there are others expenses to maintain the rig in operational condition. It is a greater refief for the company to find such a big deal. Very positive indeed.
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Naval_architect
Member |
16-Oct-2017 14:28
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Dr. Foo sounds like Dr. Fool, from the way he looks at things, (dont have my phd yet, completing my phd in 2 years, just surprised a fellow scientist would write in such one-sided manner)   the $15million loss, is a small price to pay, as what major fund houses said, it removes any future potential writedowns, trouble 2 & 3, too overly focused on Borr?  Even lets say, touchwood, their worst fear happens and SCM have to take back and resell the rigs again, least can we say, scm has $500million more (in terms of initial payment by Borr), im talking about worsecase scenarios.  On the flip side, compare to 3Q 2016 earnings, when scm made loss, what do you guys expects for this upcoming 3Q 2017? Recently financial results, scm made pretty heavy forex loss, I expect the forex loss to go away or maybe even reverse to a small gain, potentially swinging back into profit in 3Q17 as compared to 3Q16,  reasons for upside  1) scm reduced manpower cost (middle mgmt and above pay freeze, snr mgmt pay cut, freeze hirings) 2) lesser forex loss 3) more jobs and contracts resuming, (9 rigs is alot)  downside 1) orderbook still below historical average 2) ...?  |
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tormater
Senior |
13-Oct-2017 09:49
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Fishy deal indeed. Better sit out.
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ysh2006
Supreme |
12-Oct-2017 20:54
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So conclusion Dr Foo think this share now cannot buy!!
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destinykraze
Elite |
12-Oct-2017 20:10
Yells: "Reality is only a matter of perception" |
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Rally and more rally ! STI finally moving catch up with the bulls in other markets! | ||||
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leongyan
Master |
12-Oct-2017 13:42
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Last Friday, Sembcorp Marine Ltd (SGX: S51) announced the sale of nine jackup drilling rigs to Borr Drilling Limited (OB: BDRILL) for a total sum of US$1.3 billion (around S$1.77 billion).
Up, Up, and Away The announcement was well-received by the market, as Sembcorp Marine?s share price climbed by 4.6% to S$1.82 on the next trading day. According to a Tuesday article from The Business Times, analysts from several research houses think the deal will drive Sembcorp Marine?s stock price higher brokerage firm CIMB even has a price target of as high as S$2.51. The same article from The Business Times also reported on DBS Group Research?s thoughts that the deal hints at a potential recovery for the oil rig market. What To Do Now? So, is Sembcorp Marine a buy now, given the size of its deal with Borr Drilling, and the bullishness of analysts? I don?t know. But what I do know is that the deal for the nine jackup rigs has a number of troubling aspects. I would like to use today?s edition of Take Stock to point them out. Trouble Sign 1: Sembcorp Marine Is Making A Loss The first troubling sign I found concerns the nature of the deal. The total size of the deal is US$1.3 billion, plus a market-based fee that is calculated based on any potential uplift in value of the nine rigs involved. Of the US$1.3 billion amount, Borr Drilling will be paying US$500 million upfront. The balance of US$800 million ?will be paid at any time within five years from the respective delivery dates of the Rigs.? The nine jackup rigs will be delivered progressively over a 14-month period, from the fourth quarter of 2017 to the first quarter of 2019. Borr Drilling will also pay ?interest at market rates? from the date the rigs are delivered to the date that the US$800 million is fully paid up. While US$1.3 billion seems like a big sum, Sembcorp Marine is actually taking a loss on the rigs. According to the announcement, ?the transaction for the sale of the nine jackup rigs will collectively result in a loss of approximately S$15 million? if the aforementioned market-based fee and interest at market rates are excluded. Trouble Sign 2: Short History Of Operations From Borr Drilling The second troubling sign concerns Borr Drilling. Borr Drilling is a very new company ? it was established only on 8 August 2016. The company has no track record of running a profitable business in the current environment for the oil & gas industry in the six months ended 30 June 2017, the company actually made an operating loss of US$17.7 million. Given Borr Drilling?s short track record, the balance payment of US$800 million that Sembcorp Marine is supposed to receive for the nine jackup rigs looks risky to me. (Bear in mind that the US$800 million may only be fully paid up five years from the first quarter of 2019.) Trouble Sign 3: Management Has Spotty History The third troubling sign concerns Borr Drilling?s management. Simon William Johnson and Rune Magnus Lundetrę are the company?s chief executive officer, and deputy CEO and chief financial officer, respectively. Johnson joined Noble Corporation (NYSE: NE) in 2010 and was a senior vice president there prior to being appointed as Borr Drilling?s CEO on 1 August 2017. Meanwhile, Lundetrę was at DNB Markets before he joined Borr Drilling on 19 December 2016 prior to DNB Markets, Lundetrę was chief financial officer of Seadrill Limited (NYSE: SDRL) from 2012 to 2015. Noble Corporation is a US-listed company that operates in the offshore drilling industry as an owner of ultra-deepwater and high-specification jackup rigs. As for Seadrill, it is a US-listed offshore drilling contractor. It?s clear that Johnson and Lundetrę have solid experience in the offshore drilling industry where Borr Drilling is operating in too. But here?s the rub. According to data from S&P Global Market Intelligence, Noble Corporation?s revenue had fallen by 18% from US$2.73 billion in 2010 to US$2.24 billion in 2016, and its bottom-line had deteriorated from a profit of US$773 million to a loss of US$856 million over the same period. In 2014, Noble Corporation?s profit was just US$83.3 million. Seadrill, meanwhile, filed for bankruptcy last month, after suffering losses in 2015 and 2016, and in the second quarter of 2017, based on data from S&P Global Market Intelligence. It?s clear that Noble Corporation and Seadrill have suffered mightily in recent years, likely because of the sharp fall in oil prices since late 2014. Would Johnson and Lundetrę have the operational chops to make Borr Drilling a thriving company in the years ahead, one that can comfortably afford the US$800 million balance payment for the nine rigs it has bought from Sembcorp Marine, if oil prices stay stagnant or fall from current levels? It remains to be seen. A Foolish Final Word There?s an air of optimism surrounding Sembcorp Marine now at the moment given the deal it signed last week to sell nine jackup rigs. But from what I see, there is a lot to be worried about. The deal is risky for Sembcorp Marine when we consider that (1) it may only receive the bulk of the deal?s value years in the future (2) Borr Drilling has a very short operational track record and (3) Borr Drilling?s top two executives have been in senior leadership positions with offshore drilling companies in recent times, and the companies have been hammered in the past two to three years. At Stock Advisor Singapore, the Motley Fool Singapore?s premium stock recommendation newsletter that I serve on as an analyst, we study the business of our recommended companies carefully, and try to steer clear from companies whose revenues are at risk. None of the above is meant to say that Sembcorp Marine will definitely be a poor investment going forward. But, investors need to be aware of the risks involved with the company. If you'd like to read more stock analyses and recommendations, please click here to learn more about a Stock Advisor Singapore membership. |
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leongyan
Master |
10-Oct-2017 08:55
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No choice. The news is about rigs order and not about sustained oil price that is going is going up. So semb marine price is hit and run for now
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