Why Cosco can't be happy yet with US$700m sealed deals
in 2013
Profitability is still hazy.
According to CIMB, Cosco has
won US$700m worth of deals YTD. However,
CIMB noted that contracts may no longer excite the market as profitability
is uncertain.
Here's more:
Cosco
has secured contracts from a Singapore entity for the conversion of two
semi-completed hulls to high-end floating accommodation valued at
over
US$170m each. The first unit is effective. The units are scheduled for delivery
24 months after the contracts come into effect.
What
We Think
Including
the second unit of floating accommodation, Cosco has won about US$700m worth of
contracts YTD, or 35% of our US$2bn order target.
However,
we think Cosco is able to meet our expectations as Upstream recently
reported that the yard had signed a contract to build two deep-water
drillships for US-based newcomer X-Drill, costing US$650m-700m each.
We
expect this contract to be formally announcedsoon, pending customer’s deposits
and deposits and financingarrangements.
The
offshore segment is barely profitable with gross margin at 8-10%, with very
little room for error. Cost overruns and provisions are likely to wipe out any
profits from these contracts.
As
a state-owned enterprise, Cosco may be obligated to keep its current scale of
operations and workforce, sacrificing profitability.
What
You Should Do
Until
Cosco achieves stronger-than-expected earnings for several quarters, we think
the stock is not worth the punt despite its recent weakness.
Why Cosco can't be happy yet with US$700m sealed deals in 2013
Profitability is still hazy.
According to CIMB, Cosco has won US$700m worth of deals YTD. However, CIMB noted that contracts may no longer excite the market as profitability is uncertain.
Here's more:
Cosco has secured contracts from
a Singapore entity for the conversion of two semi-completed hulls to
high-end floating accommodation valued at
over US$170m each. The first unit is
effective. The units are scheduled for delivery 24 months after the
contracts come into effect.
What We Think
Including the second unit of floating accommodation, Cosco has won
about US$700m worth of contracts YTD, or 35% of our US$2bn order target.
However, we think Cosco is able to
meet our expectations as Upstream recently reported that the yard had
signed a contract to build two deep-water drillships for US-based
newcomer X-Drill, costing US$650m-700m each.
We expect this contract to be formally announcedsoon, pending customer’s deposits and deposits and financingarrangements.
The offshore segment is barely
profitable with gross margin at 8-10%, with very little room for error.
Cost overruns and provisions are likely to wipe out any profits from
these contracts.
As a state-owned enterprise, Cosco
may be obligated to keep its current scale of operations and workforce,
sacrificing profitability.
What You Should Do
Until Cosco achieves stronger-than-expected earnings for several
quarters, we think the stock is not worth the punt despite its recent
weakness. - See more at:
http://sbr.com.sg/building-engineering/news/why-cosco-cant-be-happy-yet-us700m-sealed-deals-in-2013#sthash.ZAwt2UTf.dpuf
Why Cosco can't be happy yet with US$700m sealed deals in 2013
Profitability is still hazy.
According to CIMB, Cosco has won US$700m worth of deals YTD. However, CIMB noted that contracts may no longer excite the market as profitability is uncertain.
Here's more:
Cosco has secured contracts from
a Singapore entity for the conversion of two semi-completed hulls to
high-end floating accommodation valued at
over US$170m each. The first unit is
effective. The units are scheduled for delivery 24 months after the
contracts come into effect.
What We Think
Including the second unit of floating accommodation, Cosco has won
about US$700m worth of contracts YTD, or 35% of our US$2bn order target.
However, we think Cosco is able to
meet our expectations as Upstream recently reported that the yard had
signed a contract to build two deep-water drillships for US-based
newcomer X-Drill, costing US$650m-700m each.
We expect this contract to be formally announcedsoon, pending customer’s deposits and deposits and financingarrangements.
The offshore segment is barely
profitable with gross margin at 8-10%, with very little room for error.
Cost overruns and provisions are likely to wipe out any profits from
these contracts.
As a state-owned enterprise, Cosco
may be obligated to keep its current scale of operations and workforce,
sacrificing profitability.
What You Should Do
Until Cosco achieves stronger-than-expected earnings for several
quarters, we think the stock is not worth the punt despite its recent
weakness. - See more at:
http://sbr.com.sg/building-engineering/news/why-cosco-cant-be-happy-yet-us700m-sealed-deals-in-2013#sthash.ZAwt2UTf.dpuf
Why Cosco can't be happy yet with US$700m sealed deals in 2013
Profitability is still hazy.
According to CIMB, Cosco has won US$700m worth of deals YTD. However, CIMB noted that contracts may no longer excite the market as profitability is uncertain.
Here's more:
Cosco has secured contracts from
a Singapore entity for the conversion of two semi-completed hulls to
high-end floating accommodation valued at
over US$170m each. The first unit is
effective. The units are scheduled for delivery 24 months after the
contracts come into effect.
What We Think
Including the second unit of floating accommodation, Cosco has won
about US$700m worth of contracts YTD, or 35% of our US$2bn order target.
However, we think Cosco is able to
meet our expectations as Upstream recently reported that the yard had
signed a contract to build two deep-water drillships for US-based
newcomer X-Drill, costing US$650m-700m each.
We expect this contract to be formally announcedsoon, pending customer’s deposits and deposits and financingarrangements.
The offshore segment is barely
profitable with gross margin at 8-10%, with very little room for error.
Cost overruns and provisions are likely to wipe out any profits from
these contracts.
As a state-owned enterprise, Cosco
may be obligated to keep its current scale of operations and workforce,
sacrificing profitability.
What You Should Do
Until Cosco achieves stronger-than-expected earnings for several
quarters, we think the stock is not worth the punt despite its recent
weakness. - See more at:
http://sbr.com.sg/building-engineering/news/why-cosco-cant-be-happy-yet-us700m-sealed-deals-in-2013#sthash.ZAwt2UTf.dpuf
LIM & TAN
Cosco Singapore’s unit has won contracts from a
Singapore entity for the conversion of two semicompleted
hulls to high-end floating accommodation
units (“FAUs”) worth approximately US$170 million
each. The contract for the first unit is already effective,
whilst the second unit contract would be rendered
effective in six months’ times. This would bring its
year-to-date (YTD) order book to approximately
US$690 million, which is way behind management
guidance of
US$2 billion for the full financial year.
http://www.remisiers.org/cms_images/research/Jun24-Jun28_2013/2406_LT.pdf
Hope the price can stay at $0.775 for tmr of\after market clase haha.
newbiexpert ( Date: 23-Jun-2013 19:30) Posted:
Cosco's X factor
China's Cosco Shipyard Group is lining up an order for two drillships from a Texas newcomer.
The new X-Drill
The shipbuilder will construct the deepwater vessels at a cost of between $650m and $700m each for X-Drill of Houston, according to TradeWinds' sister newspaper Upstream. The vessels can operate in depths of 3,660 metres, drilling down 15km. They incorporate Ulstein's X-Bow design, with delivery anticipated in 2016. 
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Cosco's X factor
China's Cosco Shipyard Group is lining up an order for two drillships from a Texas newcomer.
The new X-Drill
The shipbuilder will construct the deepwater vessels at a cost of between $650m and $700m each for
X-Drill of Houston, according to TradeWinds' sister newspaper Upstream.
The vessels can operate in depths of 3,660 metres, drilling down 15km.
They incorporate Ulstein's X-Bow design, with delivery anticipated in 2016.
New Build
DP3 AccommodationSemi-Submersible Vessel
¡°Neptuno¡±
Owner:
COTEMAR S.A de c.v., Mexico
Dimension: 95 x 67 x 35.7 m
Displacement: 33,300 mt
VDL: 5,500 mt
Deck Area: 1,500 m2
Accommodation: 750 men
Class: DNV
Basic Design: Ocean500, GustoMSC
Detail Design: Cosco
Mooring Type: Stacking Mooring System
Telescopic Gangway: 38.5 m, +/- 8m
Deck Crane: 150mt x 1, 60mt x 1
gd foresight! Buy low sell high. Is gd to buy when ppl are scared of buying..Shipping will be turning around soon. This is just my view. Ship building will be booming in China..
ruanlai ( Date: 04-Jun-2013 07:51) Posted:
| COSCO Total Contracts won for 2012 till to dates are US$1205MillionCOSCO won the contract worth RMB$505millions. FMs are accumulating......Upside is very much higher than downside. BUY LOW when nobody want....... COSCO Total Contracts won for 2012 till to dates are US$1205MillionCOSCO won the contract worth RMB$505millions. FMs are accumulating......Upside is very much higher than downside. BUY LOW when nobody want....... |
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COSCO Total Contracts won for 2012 till to dates are US$1205MillionCOSCO won the contract worth RMB$505millions. FMs are accumulating......Upside is very much higher than downside. BUY LOW when nobody want....... COSCO Total Contracts won for 2012 till to dates are US$1205MillionCOSCO won the contract worth RMB$505millions. FMs are accumulating......Upside is very much higher than downside. BUY LOW when nobody want.......
Its Cosco Shipyard delivered a semi-submersible drilling platform on 26 Sep 2012 called " Island Innovator" , which tilted up to four degrees on 31 May at a yard on Norway's west coast, forcing the evacuation of 63 workers, the third time rig safety was compromised by tilting in less than a year. The tilting was caused by a leak. Investigations on any breach of regulations are ongoing.
COSCO Total Contracts won for 2012 till to dates are US$1205MillionCOSCO won the contract worth RMB$505millions.
FMs are accumulating......Upside is very much higher than downside.
BUY LOW when nobody want.......
I think worst is not coming yet for this industry. Take care, bro.:)
ruanlai ( Date: 23-May-2013 09:46) Posted:
Bad qtr is over.....
Looking ahead next qtr and six month down the road.......prospect is good.
FMs are loading up the shipping section now. |
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