Ausgroup

Management got distracted looking at their "value unlocking" strategy and took their eye off the ball I think. Seems like a lot of execution issues at their projects.

Might go down to 25 cents ....

Is there sufficient value even at 25 cents or 20 cents?

http://infopub.sgx.com/FileOpen/16102013...eID=259838

Quote:

AusGroup signs Multi-Discipline Services Agreement with Woodside

AusGroup Limited subsidiary AGC Industries Pty Ltd (‘AGC’) a leading Australian based maintenance, fabrication, construction and integrated services provider to the LNG, Oil and Gas and Resources sectors, is pleased to announce that they have signed a Multi-Discipline Services Agreement (MDSA) with Woodside Energy as operator of the North West Shelf Project for maintenance work at the Domestic Gas Plant.

The scope of work will focus on AGC’s capability including mechanical works, structural steel, site installation and welding, inspection, cladding and insulation, blasting and painting, scaffolding supply and installation across all areas of the Domestic Gas Plant.

The MDSA will provide AGC with the opportunity to participate in a rolling program of general and campaign maintenance activity potentially over the next 5 years. AGC’s business is built on a proven track record in projects across the LNG, Oil and Gas and Resources sectors.

“We are pleased to continue our valued relationship with Woodside for domestic gas as part of the North West Shelf Project. We look forward to providing long-term value to Woodside’s asset management program through our extensive experience in brownfields work and our extensive suite of services,” said CEO and Managing Director Stuart Kenny.

The Karratha Gas Plant (KGP) has one of the largest domestic gas plants in the southern hemisphere and consists of two parallel processing trains which together are capable of producing approximately 12,000 tonnes of domestic gas per day. The North West Shelf project currently provides the majority of Western Australia’s total domestic gas production.

(Not vested)

Is the current level a good price to pick up?

Ausgroup has dropped to around the level during financial crisis...

Well its not just Ausgroup, i think the other EPC co in aus also suffering, if u look at their chart, all look the same.. WorleyParsons also near financial crisis level (Leighton Holdings which also has abit of overlap) also at same levels. All face the same problem of margin squeeze. The capex in mining is not sustainable.. if you read/heard James Chanos, he cautioned about the exponential growth in mining capex since 09 which is fueled by China.

In Ausgroup's case,the main headwinds are flattening revenue, margin squeeze and the large headcount that shot up since 09, they would need to trim the fat fast!!! In the announcement this morning, I think they are also raising new capital (Placement I think). I would suggest waiting for more clarity before taking action..

PUBLISHED APRIL 22, 2014

Premature to define areas of tie-up with Ezion: AusGroup

BYMALMINDERJIT SINGH
msingh@sph.com.sg @MalminderjitBT
PRINT |EMAIL THIS ARTICLE
BT 20140422 MSAUS22 1054485
Mr Kenny: Says that Ezion Holdings and AusGroup have come together to leverage synergies
AUSTRALIA-BASED offshore & marine services provider AusGroup will provide initial help to Ezion Holdings to develop its capabilities, but the scope of their collaboration beyond that is preliminary and unclear.
Speaking to The Business Times, AusGroup CEO Stuart Kenny said that though both companies had come together to leverage on synergies and that they each had ideas on how this collaboration may pan out, it was premature to define the areas of their partnership.
"Initially, they (Ezion) have a need to develop their fuel pump and they also need some project management support, although it is a little bit fuzzy. So these are the two real areas and after that we need to have some further discussions to better identify opportunities because we both have ideas but as yet, they are a little premature for us to discuss outside of our own areas," he added.
Both Singapore-listed offshore & marine companies had signed a non-legally binding memorandum of understanding earlier this month. This was to explore and pursue opportunities for collaboration in utilising the capacity of Port Melville to augment Darwin Port with increased regional capacity for oil & gas and resource industries, as well as in the provision of logistics supply chain and related support services in the Darwin Port.
Mainboard-listed Ezra also became a substantial shareholder of AusGroup in April after it acquired a 6.9 per cent stake in the Australian company.
However, Mr Kenny said the work that both companies will be doing together at the Darwin and Melville ports had yet to be decided. "That's still to be determined, we have to further discuss and identify."
As preliminary as this partnership may seem at the moment, Mr Kenny is confident that AusGroup has a unique proposition to offer to Ezion, and he feels that may be the main reason the Singapore-based company has invested and wants to partner it.
"Our competitive advantage is the integrated service line that we have, where one relationship provides many areas of expertise - project management, maintenance, welding (etc) - whether they are onshore or offshore customers, they will require these services at some point in time."
He claimed that none of AusGroup's competitors was able to provide such a wide-ranging offering, and he believes this is what attracted Ezion to it.

Announced Debt to Equity conversion. Interesting development. Anyone following this?

http://www.businesstimes.com.sg/companie...older-loan

(22-05-2017, 09:50 AM)Squirrel Wrote: Announced Debt to Equity conversion. Interesting development. Anyone following this?

http://www.businesstimes.com.sg/companie...older-loan

Based on current share price (not considering the 3 months' lock in period that those who converted their debt to equity), noteholders already have to take a ~10-20% haircut. At any time, I guess return of capital is more important than return on capital.

http://infopub.sgx.com/FileOpen/AusGroup...eID=472349

More fund-raising after bond-equity conversion exercise last year.

New subscription shares to 'white knights' at $0.035 and rights issue 1 for every 2 existing shares at same price, a discount of 25.37% to last traded market price.

http://infopub.sgx.com/Apps?A=COW_CorpAn...ee146b9156

(Not a recommendation to buy or sell, just stating facts)