Swiber Holdings

(27-02-2014, 04:01 PM)dydx Wrote: 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!

Must be noted it enjoyed a substantial one-off fair value gain in the latest result.

(Not Vested)

I've divested my entire interest in Swiber.

Despite the huge discount to NAV, I find it a dangerous stock and company which I cannot understand. In the past, I engaged in healthy stocks with low debt ratios.

There are many trade receivables that are not paid and past the due date. The net profit actually dropped if not for the fair gain in Vallianz. So, it demonstrated to me that the underlying fundamentals worsened and it hasn't been adding cash from operating activities.

I held it for nearly 1.5 months and I better admit to my mistakes before it's too late. Earned a bit of money less brokerage fees. Shall hunt for next company to put my money into good use.

Thank you everyone for your advice, as reflected by the posts.

Age Analysis of Trade Receivables but not impaired

Past due by 3 months: US$74,935,000
Past due by three to six months: US$40,963,000
Past due by 6 months: USD$70,484,000

   

Certainly no joke! Just imagine the loss it has to report, should their debtors fail to pay.

Swiber declared a dividend of $0.03 per share few days ago. Theoretically, share price should increase by the same amount since it is trading cum-dividends. But the share price only increased marginally.

Certainly investors aren't too excited about owning a piece of Swiber.

http://www.businesstimes.com.sg/premium/...s-20140814

PUBLISHED AUGUST 14, 2014
Swiber bottom line more than doubles
BYNISHA RAMCHANDANI
nishar@sph.com.sg @Nisha_BT

OFFSHORE oil and gas industry services provider Swiber Holdings saw its net profit for the second quarter more than double to US$10.11 million from US$4.16 million , while revenue slipped 9.4 per cent to US$219.33 million.
The lower revenue this quarter arose as significant revenue from ongoing projects was recognised in FY2013 while work on projects that had been landed recently for FY2014 hasn't started as yet, Swiber said.
Earnings per share for the quarter under review came to 1.7 US cents, up from 0.7 US cent previously.
Cost of sales edged down 1.3 per cent to US$202.27 million, while gross profit margin fell from 15.3 per cent to 7.8 per cent as fixed costs remained but revenue was lower.

http://www.businesstimes.com.sg/premium/...s-20140819

PUBLISHED AUGUST 19, 2014
Swiber to fly Mexican flag on five of its vessels
BYMALMINDERJIT SINGH
msingh@sph.com.sg @MalminderjitBT

SWIBER Holdings will fly the Mexican flag on five of its vessels in Mexico to entrench its position in the rapidly growing market.
The offshore construction and support services provider said that this move is a reaffirmation of its long-term commitment to clients in the country's rapidly growing oil and gas industry as Mexico announces key reforms to its energy sector.
"This is an important milestone for the Swiber group. Sailing our fleet under the Mexican state flag demonstrates our commitment in delivering our full suite of services to the development of Mexico's oil and gas industry as the country rolls out its energy reforms," said group chief executive and president of Swiber, Francis Wong.
"This undertaking will continue to establish Swiber as a local key player and enable the group to further raise the level of our support to our clients that will be operating in Mexico."

http://www.businesstimes.com.sg/premium/...s-20140910

PUBLISHED SEPTEMBER 10, 2014
Swiber sells 450m yuan of Lion City bonds

Notes are part of the company's S$1b multi-currency debt programme
BYMINDY TAN
tanmindy@sph.com.sg @MindyTanBT

SWIBER Holdings has sold 450 million yuan (S$92.5 million) of 7.75 per cent offshore renminbi notes due 2017 at par, the offshore construction and support services provider said on Monday night.
The notes are part of Swiber's S$1 billion multicurrency debt programme.
Net proceeds will be used for general working capital and capital expenditure.
This is the first time that a non-bank Singapore company is selling "Lion City" bonds, the industry's term for offshore renminbi debt issued in Singapore. Hai-nan Airlines in May was the first non-bank corporate from any country to issue Lion City bonds.

Anybody knows what happened to Swiber which resulted it in a downtrend since May?

From SGX announcement, noted half yearly profit increased 68% to US$63m (FY13: US$37m) although revenue decreased 24% to US$418.8m (FY13: US$552m).

Half year FY14 EPS at 8.3 cents (US) while NAV at US$0.968

Don't understand why Swiber keeps falling. Does this company still have potential?

Rising Debt and "artificial" profits from sale of assets, not organic growth.

(07-10-2014, 02:04 AM)kelvesy Wrote: Rising Debt and "artificial" profits from sale of assets, not organic growth.

Don't say 'artificial'. Use the term 'low quality earnings' haha.


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