PACC Offshore Services Holdings (POSH)

http://cgmalaysia.blogspot.sg/search?q=posh

Blogger M.A. Wind has written many posts on POSH. I think its a fantastic read for anybody doing due diligence on POSH.

(12-12-2014, 07:54 PM)grubb Wrote: http://cgmalaysia.blogspot.sg/search?q=posh

Blogger M.A. Wind has written many posts on POSH. I think its a fantastic read for anybody doing due diligence on POSH.

Bad for Maybulk , not POSH.

^^ Highlighted during IPO. i think have to look at their sale of ships to JV carefully

(19-04-2014, 08:49 AM)specuvestor Wrote: My sense is company stave off unprofitable ships to JV and booked under associate income, increasing consolidated margins in the process. Standard Korean accounting trick

This blog on Maybulk is also interesting:
http://cgmalaysia.blogspot.sg/2014/04/ma...osh-1.html

This bomb out share has already given out 60% of its IPO price of 1.15 , over pessimistic ?

(08-04-2015, 07:45 PM)cfa Wrote: This bomb out share has already given out 60% of its IPO price of 1.15 , over pessimistic ?

In hind sight, the Kuoks are too shrewed for minorities' comfort.

No vested interests
GG

Robert Kuok is godfather of shipping... he always win but at the expenses of minorities...

Even accommodation support vessels are not spared in the O&G tsunami...

http://infopub.sgx.com/FileOpen/POSH%20M...eID=363492

It seems a normal SPA procedure, and ended up a litigation...

(not vested)

ANNOUNCEMENT ON LITIGATION

The Board of Directors of PACC Offshore Services Holdings Ltd. (the “Company” and together with
its subsidiaries, the “Group”) wishes to announce that the Company has on 2 September 2015 been
served with a writ of summons and statement of claim (the “Claim”) by Kensteel Engineering Pte Ltd
(the “Claimant”). Further details of the Claim are set out below.

The Company had in January 2015 entered into a sale and purchase agreement (the “SPA”) with the
Claimant for the acquisition by the Company of a property in Singapore from the Claimant (the
“Acquisition”). The Acquisition is subject to the Claimant obtaining approval from Jurong Town
Corporation (“JTC”). The application by the Claimant for such approval was rejected by JTC and the
Company has accordingly sought a refund of the deposit paid under the SPA from the Claimant.

In the Claim, the Claimant has claimed for, amongst others, a declaration that it is entitled to forfeit the
deposit (including goods and services tax). The Claimant has also claimed for damages of
approximately S$3.3 million which it alleges it suffered as a result of the sale of the property not
having been completed. The total sum of the deposit (S$3.8 million) and the claim for damages
(approximately S$3.3 million) is approximately S$7.1 million. This represents approximately 9.4% of
the Group’s audited net profit after tax for the financial year ended 31 December 2014 and less than
0.1% of the Group’s audited net tangible assets as at 31 December 2014.

The Company intends to defend the Claim vigorously and is taking legal advice.

Further announcements will be made by the Company as and when appropriate.

http://infopub.sgx.com/FileOpen/Legal%20...eID=368507

Profit Guidance.

...

The current depressed state of crude oil prices has had an adverse impact on the global offshore marine industry. As a result of this challenging market condition and the uncertainty when the offshore marine industry will recover, the Group carried out a preliminary assessment of the goodwill arising from the acquisition of PSA Marine’s offshore business in 2007. Pursuant to the said review, the Group is of the view that an impairment for part of the goodwill value has to be made, While the value of the goodwill to be impaired is yet to be determined, it is expected that this will have a significant adverse impact on the financial results of the Group, for 4Q2015 and FY2015, such that it will likely be a loss for the year. There may also be impairment in the Company’s investment in certain subsidiaries.

Details of the Group’s financial performance for 4Q2015 and FY2015 will be disclosed when the Company announces its unaudited consolidated financial results for the relevant periods. In the meantime, shareholders and investors are advised to exercise caution when dealing in the shares of the Company.

I just check - SGXStockFacts shows company has Total Debt of S$1014.1 million, and cash & ST investments of only S$20.32 million.  http://www.sgx.com/wps/portal/sgxweb/hom...lang=en-us

How do one reconcile such high debts and low cash with this recent article from SGX Gateway?  Strong Balance Sheet claim???

http://ebm.cheetahmail.com/c/tag/hBZn4SnB86$MfB9faMNAAFAgcjX/doc.html

For convenience, the relevant short extract taken as follows bellow in "....":  

"Cash is King

As at 31 December 2016, the Group's cash balances stood at US$15.1 million, up from US$13.8 million as at end-2015. At end-June 2017, its cash and cash equivalents were stable at US$14.8 million.

POSH's strong balance sheet has enabled it to clinch landmark projects from global oil majors, including Shell, Inpex and Total. "Some of our competitors were awarded contracts, but could not deliver due to balance-sheet distress," he noted."

Appreciate comments and enlightment.   I am not from financial or accounting background

(28-08-2017, 04:14 PM)fooding Wrote: I just check - SGXStockFacts shows company has Total Debt of S$1014.1 million, and cash & ST investments of only S$20.32 million.  http://www.sgx.com/wps/portal/sgxweb/hom...lang=en-us

How do one reconcile such high debts and low cash with this recent article from SGX Gateway?  Strong Balance Sheet claim???

http://ebm.cheetahmail.com/c/tag/hBZn4SnB86$MfB9faMNAAFAgcjX/doc.html

I am not sure where did SGXStockFact got its "1014.1mil" as total debt, but looking at its 2Q17 results, the BS shows ST + LT term = 478.9 + 257.6 = 736.5mil.
Based on its 658mil equity, it is ~111% geared, which is quite alot, taking into consideration that majority of its assets are its operating assets (or in other words, metal)

2Q17 results: http://posh.listedcompany.com/newsroom/2...B8H9.1.pdf

One should probably know by now that if you see the Emperor's not wearing clothes, you should call it out regardless of what others say.