Singapore Shipping Corp

Sell was at 23.5c vs 23c now. maybe i should post a few more times and the price will come down another tick more.

(28-06-2013, 02:24 PM)Contrarian Wrote:

(28-06-2013, 11:53 AM)guru Wrote: A question: When there's only 1 lot on the Sell Volume @ 23.5c, does it mean only 1 lot is available?

If I were to key in buy order for 10 lots @ 23.5c, does that means I only get 1 lot and may need to wait for the remaining 9 lots?


Thanks!

(28-06-2013, 10:06 AM)Contrarian Wrote: Singapore Shipping Corp is now Ship Chartering PLUS Logistics services company.

Cougar Logistics business is a cash cow.

In time to come, we will see the potential of this company.

It can also mean there may not be many sellers.

SSC has uploaded their Annual Report 2013 into SGX and its makes a fascinating read. Its core business is easily understood since it only owns 4 vessels (including 1 with 30% stake) of which 2 are wholly owned and on long term time charter till 2025/26 generated US$15 million revenue annually.

There was little surprise in the Annual Report until I chanced upon Note 30 (pg 90 - 92) in the report which gave additional details on the recently completed M&A of the former Cougar Logistics assets for S$15 million (or US$12.0 million). Apparently, the acquired subsidiary is holding on to US$7.0 million worth of cash hence the actual net cash cost of the acquisition is US$5.0 million. This is a rather attractive price considering the asset has been generating S$3 million net profit in recent years. Please correct me if I misinterpreted the data in the Annual Report.

(Not Vested)

one wonder why the ex-owner of cougar Logistics sold such good business to SSC at such a low price....
I read the rationale given is to concentrate on logistics warehousing or something like that
Make sense?

Vested

the terms of the sale is indeed surprising.

but we wonder if it can continue to generate SGD 2 mil in profits.

the loss of their very old ship could amount to USD 1 mil as indicated so this 2 mil will more or less off set that loss.

wonder how much synergy or optimization can be done to this.

anyone at the agm, are they scraping or renewing the charter for the aging ship? thanks alot in advance

SSC reported 2Q earnings of US$2.27 million with 1H 2014 EPS hitting 1.0 US cents. This is primarily due to the acquisition of the former Cougar Logistic assets at an really attractive price. I suspect EPS will be close to 2.0 US cents (loss of income by Singa Ace in 4Q 2014 but lower dry docking expense for the 2 core vessels) for FY 2014. It will be great if dividends were raised to 1.5 cents though if he chooses to retain capital for fleet expansion, its fine too.

1) A vessel faced a decline in charter hire rates - is this the Singa Ace vessel ?

2) The Group is acquiring a 10 year old vessel which will be chartered out upon delivery next year.

http://infopub.sgx.com/FileOpen/SSC30091...eID=263562 [2Q 2014]

(Vested)

There is no disclosure on the yield from the purchase and chartering of 10 year old vessel.

Vested

smart business by Ow.
Spin off Cougar from SSC, then sell off at profit, now buy back at discount.
I also want to do this kind of business.

From the latest result, it seems that the cougar assets are generating additional US$1.2m NPAT semi-annually, the potential loss of profit from the expiring of charters with Mitsui is estimated to be US$1.5m annually. Assume that the 2 vessels did not contribute any revenue or profit in FY2015, I still expect a US$900k increase in the NPAT, not yet counting the contribution from the new vessel which scheduled to deliver next year. I do worry about the lower charter rate that it might secure for the new vessel because of the current gloomy shipping market. I am not sure if these specific vessel are affected but I guess the charter rate will be definitely much stable comparing to container ship charters.

which is why i am curious about the yield from the new vessel......

But knowing Senior Ow, he won't commit into loss making deals...