Nordic Group

Nordic Group held an Analyst Briefing on 6 July 2015, as announced on SGX. Today, Nextinsight published an article that reveal snippets of the Q&A session that follows. To read, click the link below:

http://www.nextinsight.net/index.php/sto...chairman-2

http://www.nytimes.com/2015/08/01/busine....html?_r=0

"Chevron’s net income fell severely in the second quarter to $571 million, from $5.67 billion in the same quarter a year ago...Its oil and gas production businesses actually lost money...
There was some good news in the Chevron results. Earnings from its refinery businesses, which make gasoline, lubricants, diesel and other refined products, were lifted by stronger margins to nearly $3 billion from $721 million in the year-ago quarter."

I understand that Chevron is one of Nordic's customers. But which sector of their business does the scaffolding and insulation serve? Refinery side of the house will be good news. Recently, Nordic announced on 20 Jul 2015 that it secured scaffolding and insulation works for "Chevron Carboxylate Project"
Similarly, for ExxonMobil Chemical - Nordic announced in Apr 2015 that it was awarded contracts "to perform scaffolding work for construction of a chemical plant at Jurong Island, Singapore under ExxonMobil Chemical Asia Pacific Pte Ltd (ExxonMobil) – Aurora Project."

Oil & Gas industry is taking big hits, just wondering if anyone has any idea how affected will Nordic's businesses be since some of their customers are getting hit right now.

Would appreciate valuable input or insights.

-vested-

To my knowledge, nordic's insulation and scaffolding biz should serve the refinery plants etc. Im not in the o&g industry, but i did chemical engineering back in school. With margins getting squeezes thinner, o&g plants should be trying to find ways to cut production costs and improve productivity. Chemical processes require heating different process streams for the process reaction to be optimal; heat lost to the environment is akin to throwing money down the drain. Hence, i can see that insulation would be an important aspect of operation and maintenance. Best case scenario would be more plants engaging insulation services to improve productivity; worst case would be cutting down of such projects to save costs. My bet is that the latter scenario may not happen as if I am working in a plant, i would take the opportunity to use this downtime to carry out maintenance projects which could require shutting down of different units.

I don't think the total pie for insulation sevices will get bigger without more plants coming online, but it should roughly be there. With the synergies between multiheight and austin, im hoping that this will put nordic in a more competitive position than the other players.

(Vested)

(02-08-2015, 01:13 AM)shawn_sass Wrote: http://www.nytimes.com/2015/08/01/busine....html?_r=0

"Chevron’s net income fell severely in the second quarter to $571 million, from $5.67 billion in the same quarter a year ago...Its oil and gas production businesses actually lost money...
There was some good news in the Chevron results. Earnings from its refinery businesses, which make gasoline, lubricants, diesel and other refined products, were lifted by stronger margins to nearly $3 billion from $721 million in the year-ago quarter."

I understand that Chevron is one of Nordic's customers. But which sector of their business does the scaffolding and insulation serve? Refinery side of the house w,ill be good news. Recently, Nordic announced on 20 Jul 2015 that it secured scaffolding and insulation works for "Chevron Carboxylate Project"
Similarly, for ExxonMobil Chemical - Nordic announced in Apr 2015 that it was awarded contracts "to perform scaffolding work for construction of a chemical plant at Jurong Island, Singapore under ExxonMobil Chemical Asia Pacific Pte Ltd (ExxonMobil) – Aurora Project."

Oil & Gas industry is taking big hits, just wondering if anyone has any idea how affected will Nordic's businesses be since some of their customers are getting hit right now.

Would appreciate valuable input or insights.

-vested-

24 Nov, 2015 - Nordic Group down more than 12%, gets query from SGX

http://www.theedgemarkets.com/sg/article...-query-sgx

(24-11-2015, 11:57 AM)snapsnap Wrote: 24 Nov, 2015 - Nordic Group down more than 12%, gets query from SGX

http://www.theedgemarkets.com/sg/article...-query-sgx

Nordic has spent about $800k to purchase back 4.4 million shares so far, but price hardly moves up. Would it continue to buy back?

Announced a good set of 1Q16 results on Fri. Both revenue and net profit increase while EPS increase from 0.4 to 0.6 cents.

Sent from my GT-I9305 using Tapatalk

AE is a good acquisition. A low capex, high cash flow, and stable business even in current difficult industry environment. 
In the past 5 years, the two acquisition multi-height and AE showed strong investment insight of Mr Chang, as also shown in the interview from below link.
http://www.nextinsight.net/index.php/sto...chairman-2

Multi-height helped Nordic perform well under the shipping downturn. While, with both AE and multi-height, it will provide Nordic with enough cash flow to stand and most likely perform well in the bloody O&G sector.

(28-06-2015, 06:28 PM)Bluechipfan Wrote:

(26-06-2015, 10:29 PM)Polaris Wrote: NORDIC CLINCHES INSULATION CONTRACTS WORTH SGD 3.7 MILLION    

Austin Energy (Asia) Pte Ltd (Austin), wholly owned subsidiary of Mainboard-listed Nordic Group Limited (Nordic Group), has been awarded three contracts with value totalling approximately S$3.7 million to provide labour and materials to perform insulation works for Ichthys Field Development Project and Ivar Aasen Project. Initial phases of the contracted works for Austin have commenced in Q2 2015 and these projects will continue up to Q1 2016.  The above contracts are not expected to have material impact on the net tangible assets and earnings per share of Nordic Group Limited for the current financial year.    

BY ORDER OF THE BOARD  
CHANG YEH HONG
EXECUTIVE CHAIRMAN
25 JUNE 2015

I have been buying from 13 cents to 19 cents. Average price around 16 cents. Still queuing to buy at 18 cents but tempted to queue at higher price because I scare a breakout from current consolidation. I like the dividend policy, the visibility in the earnings and the fact that management put their money where their mouths are. They have been buying big chunk of shares using their personal fund and it bode well. I hope the price don't move so fast as I waiting for my bonus to come in to buy more. Hopefully I don't have to buy at much higher price.

I have accumulated the desired amount of shares I wanted and my average price is almost 20 cents. The reason to invest besides what's mentioned above is also that the management seems to have clear idea of growing the company through good acquisitions. The latest results should be announce soon.

http://ebm.cheetahmail.com/c/tag/hAAAAAAB86$MfB9e052AAAAAAf4/doc.html

Interview of Mr Chang Yeh Hong, the Executive Chairman of Nordic. If he is successful in doubling the market cap in 5 years, the share price will be at least 80 cents by then. Good fundamentals with sound management. I am willing to hold and wait to see if his '5 years double the cap' plan will come to fruition or not. 40% dividend payout policy makes the wait worthwhile.

Good results as expected. Increase in interim dividend. Higher revenue, gross and net profit. Growth story intact with acquired companies contributing to top and bottom lines.