Penguin International

(15-10-2013, 09:49 PM)Ben Wrote: .........

One more point to note. KS investments, a Keppel Company, is the second largest shareholders of Penguin, owning 6.24% of the company. Keppel is the largest offshore rig builder in the world, Penguin is the builder and charterer of OSV. It is a perfect fit.

This probably explains why Mr. Wong Ngiam Jih sits on the board as an Independent Director. He is the CFO of Keppel O&M

Of interest is Mr. Chan Moon Kong another sitting ID who is Senior Vice President at SembCorp Industries.

How does SembCorp fit in here?

Any ideas?

Penguin has recently added the following para in its home page.....
http://www.penguin.com.sg/
"Pocket Rocket. In September 2013, Penguin Shipyard International completed a successful sea trial for its debutante Flex-25, which hit speeds in excess of 30 knots while offering a stable and quiet ride throughout. The first two Flex-25 crewboats will be deployed in West Africa, which is fast becoming a Home Away From Home for the Flex."
So we can reasonably expect the 2 new Flex-25 crewboats destined for West Africa will add to revenue and profits in the 4Q or subsequent quarters.

Penguin has also recently added its first new biggest and higher load-capacity Flex-50 crewboat - named "Pelican Victory" - to its growing charter fleet.....
http://www.penguin.com.sg/vessel-specs/
Like all other crewboats and FSIVs (Fast Supply Intervention Vessels) in its charter fleet, the vessels are available for quick sale to customers who have an urgent need for a vessel or can't wait for a new one to be built which would take up to 9 months.

From the recently released 3Q results.....
http://infopub.sgx.com/FileOpen/Penguin_...eID=263089
we can tell that Penguin had another steady quarter, but without booking any sale of vessel from its charter fleet. From the higher Inventories balance of $17.04m (30Jun13: $14.59m) and Other payables and accruals balance of $39.9m (30Jun13: $19.0) (note: this includes advance payments received from customers for sale of vessels built-for-stock) as at 30Sep13, I think we have quite clear indications for a healthy increase in orders backlog in 3Q which have been placed on production, and this should lead to deliveries and again stronger quarterly revenues in the coming quarters.

BMT Nigel Gee Soars Higher with Penguin

http://www.bmt.org/news/2013/11/bmt-nige...h-penguin/

(vested)

(18-11-2013, 05:55 PM)shn Wrote: BMT Nigel Gee Soars Higher with Penguin

http://www.bmt.org/news/2013/11/bmt-nige...h-penguin/

(vested)

Shn, that is really a piece of exciting news! Thanks!

Yes, it is looking more and more promising. I hope it will start paying dividend.

(19-11-2013, 07:58 AM)shn Wrote: Yes, it is looking more and more promising. I hope it will start paying dividend.

With a cash on hand of $41M as at end Sep, or $0.06 cash per share and no debts, I think the chances of a dividend payout is high. But I believe the dividend payment, if any, is just icing on the cake. The company is in a sweet spot to capture the recovery of the offshore industry in the next few years.

Under its mainstay crewboats product category, Penguin now has 2 proven models - Flex-36 and Flex-38 (with 4 variations) - in volume production, and 2 new models - Flex-25 and Flex-50 - which have passed sea trials and customer acceptance tests. There is every reason to believe that Penguin is now very well-placed to grow its crewboats business - which is backed by increasing global demand - on a sustainable and profitable basis for the longer term. Penguin's ability to design and build other aluminium vessels like ferries, etc., will further diversify and enlarge its revenue base as a boat builder.

Penguin's growing charter fleet of crewboats now deployed mainly in Asia will bring in increasing sustainable charter income. To top it all, Penguin's on-going contract to provide ferry service to-and-fro SAF Changi Ferry Terminal and BMTC/Pulau Tekong will bring in a steady stream of FCF.

From Marcon market report:

"As the offshore market has improved worldwide, demand has increased for older generation crew boats and new fast crew/supply vessels. Over the last year, the number of older and newer crew boats for sale (over 100’) has shrank, following the sale of several. DP fast crew/supply vessels remain in short supply on the sale and purchase market as operators enjoy high utilization. The increase in overall boats for sale is mainly attributed to smaller boats (less than 100’). Finding good purchase opportunities in this market is difficult. Southeast Asia and the Mid-East are also enjoying high utilization with a lack of boats for sale."

Fast crew vessels is what penguin international's famous for.

http://www.marcon.com/library/market_rep...b08-13.pdf
(not vested)

Penguin whole morning nothing done. To me, this is a good sigm indicating most of the loose shares sold in the last few sessions have been well absorbed by buyers/investors willing to hold. Great!

(22-11-2013, 11:57 AM)dydx Wrote: Penguin whole morning nothing done. To me, this is a good sigm indicating most of the loose shares sold in the last few sessions have been well absorbed by buyers/investors willing to hold. Great!

You know how to see things positively, lol. With rig builders busy winning orders, supporting sectors, such as OSV and crew boats builders will be kept busy as well. Not forgetting that Penguin is also actively building up its chartering business as chartering rates are on the rise. Per my rough calculation, its chartering business should command a margin of about 50% now. Next few years for Penguin will be rally (really) interesting