Swiber Holdings

[CityFarmer]

Swiber's ex-management, is in trouble with SGX. The queries helped in this case...

SGX goes after Swiber in potential rule breach
14 Sep 2016 09:00
By Tan Hwee Hwee

THE SINGAPORE Stock Exchange (SGX) is going after Swiber Holdings for potential breaches to the exchange's Rule 703 pertaining to disclosure of material information.

In the letter obtained by The Business Times relating to the potential breaches, SGX made reference to Swiber Holdings' disclosure lapses on the US$710 million West Africa project first announced in late 2014 and two separate litigation claims by Likpin International Ltd and Greene Energy Group Asia Pacific Pte Ltd.

SGX said citing disclosure lapses on the US$710 million project, Swiber has potentially breached paragraph 25 of Appendix 7.1 to Rule 703.
...
Source: Business Times

[brattzz]

not only SGX, DBS also need to be questioned by MAS for this type of rolling over loans to recover bad loans.... :O

[CityFarmer]

not only SGX, DBS also need to be questioned by MAS for this type of rolling over loans to recover bad loans.... :O

SGX is going after disclosure lapses, rather than flaw business practices. 

[GPD]

Seriously, how are the directors of listed companies being trained? Go through motion in director course to get a paper to be legally qualified? MAS, SGX, CAD have been constantly mentioned but SID is no less guilty in producing these "directors". Time for a review (together with SGX listing rules perhaps)?

[BlueKelah]

as trump like to say, its all rigged (aka KELONG)

Occasionally they will go after someone after the fact to show they are doing some work and make an example of the offender. 

Not just SGX, in the US those NAsdaq and DOw jones all like this also what, every few years.

first noble then now swiber.. watch the debt ajd gearing.. Wilmar also has a lot wonder which local banks are funding them..

[specuvestor]

Hi Blue and VBs

Somehow when Trump is quoted, it lowers the integrity and intelligence of the discussion

If one wants to see "NATO" at work, look no further than Taiwan politics

Cycles will happen. Central Banks can only smoothen it or minimize impact. Fact that there is crime in Singapore doesn't mean Singapore is not one of the safest place in the world. Fact that there is boom bust does not mean Central banks are useless. Most people don't think in terms of "what-if" / alternative scenarios / opportunity costs but usually heuristically simple linear cause and effect

Like I said, commodity traders are inherently leveraged just like banks. If it is not viable biz model then it should be closed. But just as banks closing market makers because it is deemed as proprietory trading, there will be collateral damage if commodity trading is deemed undesirable. As I wrote elsewhere I am very concern about overpriced bonds turning into a route when everyone heads for the door because market making is not there to cushion. There is inherent opportunity cost and it can be fatal if one doesn't understand how the value chain works

As for Swiber this was a $1b market cap stock in 2007 with more than $730m equity in 2013. Was the banks delusional? I would say their stress test was not robust enough given the volatility of oil prices. Then again if they were too strict then the sector cannot develop which is synergistic to Singapore's strategic interest of being O&G hub. If they do, it's too aggressive; if don't do, too conservative. Then path of least resistance is do nothing, like some of our neighbours.

We have to be mindful of both hindside and also foresight.

[brattzz]

For cyclical biz, GO in BIG towards the peak and come out BANG at the bottom!

Make the BIG money, sell-out the biz, and wait for bottom to start-all over again....

*smart money at work!*

[touzi]

DBS CEO sees O&G in 2 groups: those involve in ongoing oil production activities, and those that don't (I don't know how to describe the second group).

https://www.fool.sg/2016/09/13/dbs-group...-industry/

The bulk of the Singapore oil and gas industry are people who own vessels and then, they charter out the vessels for servicing. They charter vessels to move people up and down, to move supplies up and down, to go and service the platform, go and service the oil rig – a large part of that is production activity.

So, the rigs are there, oil is being produced, somebody’s got to go and maintain the rigs. So, the bulk of it is that you own the vessels and you charter out the vessels. What that also means for the banking industry is that the bulk of the financing is secured. Financing vessels which have value.”

Swiber is one of a handful of names in Singapore which do a different business. And that is a contracting business. So, what they do is that they go and actually work to lay the pipeline, build the platform – and they are a contractor.

The best way to think about them is exactly as you hire a contractor to do your house. A maincon [main contractor]. They are the maincon who comes and do this thing.”

[donmihaihai]

Found this interesting interview with Swiber exCEO (CEO then):
http://www.sgx.com/wps/wcm/connect/sgx_e...s-20150626

Try to forget the hindsight bias and see if you can tell what's wrong?! Honestly without looking at numbers (BS), I can't tell.

Standard PR interview/article. Careful on article like that. Usually give a big negative on the co. such article.
 Timing of the article is already a warning sign. 

[cyclone]

SGX reprimands Swiber Holdings Limited

Singapore Exchange reprimands Swiber Holdings Limited ("Swiber") for its breach of Listing Rule 703, read with Paragraph 25© of Appendix 7.1, by failing to provide a balanced and fair announcement in relation to a US$710 million project award. The relevant listing rule requires a company’s announcement to be  balanced and fair, and to avoid, among other things, presentation of favourable possibilities as certain, or as more probable than is actually the case.

For background of events leading to public reprimand and basis for the reprimands : http://infopub.sgx.com/FileOpen/20161031...eID=427051