Singapore Shipping Corp

(11-12-2014, 01:27 PM)valuebuddies Wrote: It gave me an impression that someone is accumulating before an official analyst report is released to public. Stay tuned..

seems quite hard for SSC to attract any analyst report. market cap and liquidity just too small?

Before GFC, bigger company and better liquidity also lack of active coverage... Maybe its business model just doesn't excite too many investors looking for newsflow...

(11-12-2014, 02:15 PM)kikababoo Wrote:

(11-12-2014, 01:27 PM)valuebuddies Wrote: It gave me an impression that someone is accumulating before an official analyst report is released to public. Stay tuned..

seems quite hard for SSC to attract any analyst report. market cap and liquidity just too small?

(11-12-2014, 02:48 PM)greengiraffe Wrote: Before GFC, bigger company and better liquidity also lack of active coverage... Maybe its business model just doesn't excite too many investors looking for newsflow...

(11-12-2014, 02:15 PM)kikababoo Wrote:

(11-12-2014, 01:27 PM)valuebuddies Wrote: It gave me an impression that someone is accumulating before an official analyst report is released to public. Stay tuned..

seems quite hard for SSC to attract any analyst report. market cap and liquidity just too small?

and coupled with OCK's lack of talk to spice up investors' interest in SSC. i don't see how any analyst will bother covering this lol.

I see 377 sell orders at 29 against 1 buy order at 285 haha.

In general, fundamentals precede market interests. If the Management raises the dividend to 2.0 SG cents per share once all the vessels are delivered, I won't be surprised to see this Company trading at > 30 cents. Naturally, will they do it remains the million dollar question haha.

(11-12-2014, 03:44 PM)Nick Wrote: In general, fundamentals precede market interests. If the Management raises the dividend to 2.0 SG cents per share once all the vessels are delivered, I won't be surprised to see this Company trading at > 30 cents. Naturally, will they do it remains the million dollar question haha.

Based on the previous year's result, a EPS of 2.0 US cent per share is possible before considering Capricornus Leader and Centaurus Leader. We probably need to wait until 3Q results to know their contribution to the results. Probably we have to wait until FY2016 to get DPS > 2.0 SG cent when the newbuild's contribution is taken in for the full year. Once the DPS goes up, the share price will naturally follow.

Singapore Shipping Corporation Limited (“SSCL” or “the Group”) secures US$16.5 Million Term Loan Facility
http://infopub.sgx.com/Apps?A=COW_CorpAn...eement.pdf

Singapore, 6 January 2015 – Singapore Exchange Mainboard-listed Singapore
Shipping Corporation Limited wishes to announce that it has entered into a US$16.5
million seven years term loan financing facility (“Term Loan”) with a leading Japanese
financial institution.
The Term Loan will be used to finance the acquisition of a Pure Car Truck Carrier
(“PCTC”) vessel. The PCTC vessel is one of the two vessels currently pending delivery,
as stated in the announcement dated 5 November 2014. Upon its delivery in January
2015, the vessel will be chartered to a blue chip shipping major.
SSCL’s CFO Ms. Chua Siew Hwi said “SSCL has always enjoyed good relationship with
banks who have been supportive of our business growth. The latest term loan facility
provides us the flexibility needed for our business expansion.”
Mr. Ow Yew Heng, Executive Director, added, “The Group is rated as conservative and
undergeared by international banks.”
About Singapore Shipping Corporation Limited
Singapore Shipping Corporation Limited is a well-established shipping group in Asia
specialising in PCTC and total logistic services. The Group operates a fleet of 5 Pure
Car Truck Carriers on long term charters to blue chip shipping majors.

Singapore Shipping Corporation Limited (“SSCL” or “the Group”) secures US$16.5 Million Term Loan Facility

http://infopub.sgx.com/FileOpen/SSC_Pres...eID=330585 [Press Release]

1) This will be used to finance the US$16.5 million acquisition of the second PCTC vessel (MV Centaurus Leader) announced in FY 2014. The vessel will be delivered in Jan 2015.

2) This is the sister vessel of MV Capricornus Leader which was delivered in Sept 2014 and contributed slightly to 2Q 2015 results. Both vessels are on 15 year charters with estimated revenue of US$12.5 million per year.

3) No news on the financing of the US$80 million newbuild acquisition nor its charter details. However, the banks have rated SSC "as conservative and undergeared" so I expect a loan financing agreement to be reached.

Debt Profile of the Group:

i) MV Boheme + Sirius Leader

Debt: $16.9 million

ii) Cougar Logistic Assets

Debt: 0

iii) MV Capricornus Leader

Debt: 0

iv) MV Centaurus Leader

Debt: $16.5 million

v) Newbuild Vessel

Debt: Unknown (max: 80 million)

vi) Cash: $3 million

(Vested)

Was searching the net, seems like MV Centaurus Leader just reached Singapore..

http://www.marinetraffic.com/ais/details...RUS_LEADER

While searching, found that that this ship ran aground before in USA.

http://incidentnews.noaa.gov/incident/7772

(Vested)

(07-01-2015, 11:53 AM)letissier07 Wrote: Was searching the net, seems like MV Centaurus Leader just reached Singapore..

http://www.marinetraffic.com/ais/details...RUS_LEADER

While searching, found that that this ship ran aground before in USA.

http://incidentnews.noaa.gov/incident/7772

(Vested)

cougar ace also ran aground before with mazda cars. lol looks like SSC like to buy repaired vessels.

Found an article about how the some aspects of the RORO design makes it more prone to sinking.
Still, number of voyages that end without incident far outnumber the number of sinkings, as pointed out in the end of the article.
http://gcaptain.com/are-roros-safe/

I assume that in the event of a sinking, the ship operator (SSC in this case) will claim from insurance. Can the charterer impose any penalty on SSC if it cannot find another vessel to fulfill the charter?

Another unrelated question:
Wikipedia describes a few types of chartering.
http://en.wikipedia.org/wiki/Chartering_%28shipping%29

I assume that applicable type for SSC is the "time charter", as described below:
"A time charter is the hiring of a vessel for a specific period of time; the owner still manages the vessel but the charterer selects the ports and directs the vessel where to go. The charterer pays for all fuel the vessel consumes, port charges, commissions, and a daily hire to the owner of the vessel."

That would mean that SSC will not benefit from the current drop in oil prices. As in, we cannot expect any decrease in the "Vessel operation and crew management costs". Please correct me if I am wrong, thanks!

(vested)