Swiber Holdings

^^^ Key question to ask is the tenor profile of the AR and what is gross add and gross recovered, rather than net.

(07-02-2014, 11:09 AM)oys-ter Wrote:

(03-02-2014, 08:50 AM)kelvesy Wrote: By March, Swiber would be likely to receive the gains from sale of disposal and issue a one-time dividend to reward shareholders. Hopefully, together with the sale of PJW 3000 LLC, they'll use it to pay down their debt ratios. I certainly hope this year would be a changing year for Swiber, win quality contracts using their networks, and be prudent in their balance sheets.

Swiber holds 320,250,000 share of kreuz. After selling Kreuz for $0.80, Swiber will be receiving a proceed of S$256,200,000. However, Swiber need to pay back Kreuz for the net receivable it owed to kreuz. The amount is US$ 102,193,971.24. Swiber investment at cost in Kreuz is US$ 121,009,000.

Doing the math,
S$256,200,000 - US$ 102,193,971.24 - US$ 121,009,000 = -S$ 27,267,773

Taking US/SGD = 1.27

It is unlikely to me that swiber will be giving out special dividend after calculating that and the high receivable that Swiber has.

Interesting observation and maths. In reality Kruez is funding Swiber. Another company that I would be very careful is Ezra.

(07-02-2014, 12:42 PM)specuvestor Wrote: ^^^ Key question to ask is the tenor profile of the AR and what is gross add and gross recovered, rather than net.

Unfortunately, not going to help much as gross add would be unbilled revenues plus billed revenues while gross recovered would be billed revenues collected. The picture still wouldn't be clearer.

(07-02-2014, 12:50 PM)minimax Wrote:

(07-02-2014, 12:42 PM)specuvestor Wrote: ^^^ Key question to ask is the tenor profile of the AR and what is gross add and gross recovered, rather than net.

Unfortunately, not going to help much as gross add would be unbilled revenues plus billed revenues while gross recovered would be billed revenues collected. The picture still wouldn't be clearer.

There is a big difference between 100-99=1 and 2-1=1

(07-02-2014, 01:00 PM)specuvestor Wrote:

(07-02-2014, 12:50 PM)minimax Wrote:

(07-02-2014, 12:42 PM)specuvestor Wrote: ^^^ Key question to ask is the tenor profile of the AR and what is gross add and gross recovered, rather than net.

Unfortunately, not going to help much as gross add would be unbilled revenues plus billed revenues while gross recovered would be billed revenues collected. The picture still wouldn't be clearer.

There is a big difference between 100-99=1 and 2-1=1

Actually, Swiber does provide gross recovered in their annual reports but not gross add.

Imagine in the extreme case that gross add is all unbilled revenues while gross recovered is bill revenues collected, what meaningful collusion can you draw?

(07-02-2014, 11:09 AM)oys-ter Wrote: Swiber holds 320,250,000 share of kreuz. After selling Kreuz for $0.80, Swiber will be receiving a proceed of S$256,200,000. However, Swiber need to pay back Kreuz for the net receivable it owed to kreuz. The amount is US$ 102,193,971.24. Swiber investment at cost in Kreuz is US$ 121,009,000.

Doing the math,
S$256,200,000 - US$ 102,193,971.24 - US$ 121,009,000 = -S$ 27,267,773

Taking US/SGD = 1.27

It is unlikely to me that swiber will be giving out special dividend after calculating that and the high receivable that Swiber has.

Hi oyster, thanks for the calculations.

Refer to this attachment: www.valuebuddies.com/attachment.php?aid=660

I think if Swiber is able to provide a breakdown of their annual trade receivables, that would be deem useful to the investing community too.

"Pursuant to the Netting Agreement (as defined and described below), the Company will receive a net aggregate cash consideration of approximately S$129.2 million (the “Net Aggregate Consideration”), being a sum in cash equal to the aggregate Scheme Consideration for the Relevant Shares of approximately S$256.2 million (the “Aggregate Scheme Consideration”), less the Aggregate Net Receivable Amount (as defined below) of approximately S$127.0 million.

The Group is expected to record a net gain of approximately US$90.6 million from the Proposed Disposal"
- source (http://infopub.sgx.com/FileOpen/SHL.Proj...eID=262710)

You're right, we need to include the cost of investment. Where can I find Swiber's cost of investment in Kruez? Swiber owns 320,250,000 shares of Kruez but I can't find anywhere else that mentioned the cost of those shares.

(07-02-2014, 01:15 PM)minimax Wrote:

(07-02-2014, 01:00 PM)specuvestor Wrote:

(07-02-2014, 12:50 PM)minimax Wrote:

(07-02-2014, 12:42 PM)specuvestor Wrote: ^^^ Key question to ask is the tenor profile of the AR and what is gross add and gross recovered, rather than net.

Unfortunately, not going to help much as gross add would be unbilled revenues plus billed revenues while gross recovered would be billed revenues collected. The picture still wouldn't be clearer.

There is a big difference between 100-99=1 and 2-1=1

Actually, Swiber does provide gross recovered in their annual reports but not gross add.

Imagine in the extreme case that gross add is all unbilled revenues while gross recovered is bill revenues collected, what meaningful collusion can you draw?

If the gross recovered is 1 instead of 99, it does tell those of us who are focused on cashflows a lot of information.

Revenue Recognition

   

Impairment - so far, there is 11m.

   

Trade Receivables

   

Trade Receivables - Construction Contracts

   

From the news linked below, this tells me that Swiber is certainly anticipating further demands for its services. Maybe it could be due to increased enquiries from customers - both new or existing. I doubt the management would be foolish to expand their shipyards (till 2021 - that's a long lease) when there is no clear indicators. I believe this bodes well for Swiber in the future. With a larger shipyard, they are able to do a lot more.

And the existing lease, together with the new lease, will be extending to 2021! It'll add 1.2 hectares - which is 50% increase from their current 2.4 hectares shipyard. Certainly, a piece of good news. That being said, I am still watchful over their debt.

http://infopub.sgx.com/FileOpen/Swiber_S...eID=274197

SWIBER EXPANDS EXISTING SHIPYARD FACILITIES WITH THE SECURING OF  SECOND SHIPYARD LEASE 
‐ Additional  land  area  of  approximately  over  1.2  hectares  and  95  metres  run  of waterfront  boundary  length to meet increased  demands  in shipbuilding, repair and conversion services.

(07-02-2014, 01:36 PM)kelvesy Wrote: You're right, we need to include the cost of investment. Where can I find Swiber's cost of investment in Kruez? Swiber owns 320,250,000 shares of Kruez but I can't find anywhere else that mentioned the cost of those shares.

You can find the Swiber cost of investment for Kreuz in Swiber annual report FY2012 under investments in Subsidiaries.

FY13 (ended 31Dec13) full-year result out this morning…..
http://infopub.sgx.com/FileOpen/SwiberFY...eID=276394 [result announcement]
http://infopub.sgx.com/FileOpen/PressRel...eID=276395 [press release]

Notwithstanding its continuous growth and profit increase, I find Swiber's business a very high risk one, including high financial risks, mainly because of its ever increasing total debt level and high leverage ratio. Certainly no my cup of kopi!