Swiber Holdings

[CityFarmer]

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

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


Sent from my iPhone using Tapatalk

Yes, artificial seems inaccurate. I will refer it as non-recurring earning.

[kelvesy]

Thanks CityFarmer and opmi, I couldn't think of a better word just now. I would preferred the term "non-recurring".

[greengiraffe]

http://www.businesstimes.com.sg/companie...-red-in-q3

Swiber US$27.5m in the red in Q3
By
Malminderjit Singhmsingh@sph.com.sg@MalminderjitBT
13 Nov5:50 AM
Singapore

SWIBER Holdings on Wednesday posted a net loss of US$27.5 million for the third quarter compared to a net profit of US$7.7 million made during the same period last year, due mainly to lower revenue recognition for projects that have not begun.

Revenue for the three months

[butcher]

Swiber to raise S$45.9 million with 1 for 2 rights issue at $0.15 for each right share. Net proceeds estimate to be $45 million.
Last traded price before announcement at 29.5 cts, theoretical ex-rights price ("TERP") of 24.7 cts per share.

The entire proceeds for working capital purposes after paying off estimated $0.9 million in related costs.

Gearing are high and think the company exhausted its debts avenue and raising equity now.

Hope the company also see better luck winning more tender bids.

http://infopub.sgx.com/FileOpen/SHL%20-%...eID=330107

[CY09]

I will strongly recommend against investing in Swiber and ezion. Both companies while growing are expanding by taking on more debts, similar to Ezra. Another thing that amazes me is that many brokerages tout these two as buys - Osk, UOB, Vickers. This companies produce negligible cashflows and are highly geared, more than reits

Personally, stick to "VB brokerage". The recommendations are better

[butcher]

Swiber, Ezra and Ezion are no longer analysts' darlings I think. Have read somewhere, OCBC gave a sell call.
Not all are bad, still have to look at fundamentals

Swiber under heavy selling pressure

[butcher]

Any Swiber investors here?

Rights issue now officially on, Offer documents now sending to shareholders.

http://swiber.listedcompany.com/newsroom...6TRD.1.pdf

http://swiber.listedcompany.com/newsroom...6TRD.2.pdf

[Gaudente]

Swiber to raise S$45.9 million with 1 for 2 rights issue at $0.15 for each right share. Net proceeds estimate to be $45 million.

In their 3q report they stated cash for 111 million USD yet they are now butchering the share quote down to 15cents to raise a paltry 45 million SGD.
Hell knows how their real balance sheets are.

[kelvesy]

By simplying 'shorting' this stock, one would have made >50% gains. Despite all those one-off gains, the share price has tanked. What can I say, there is a lot of financial 'engineering'. I purchased this stock but quickly out after I've digging deeper into their balance sheet. Lucky escape!

This is scary.

[AQ.]

The good thing abt history, is that it repeats itself; the bad thing abt history, is that people thinking it's boring and dismiss it.

The oil upheaval has created one more addition to the "lessons from having high debt load" case studies, with Swiber looking as a prime example. Business cycles are tough enough - gets even tougher when one is at the mercy of rating agencies, debt vultures etc. Below is the excerpt from a LimTan report:

"Given the continued weakness in oil prices, it is commendable that Swiber can conƟ nue to garner new contracts from repeat customers. Notwithstanding this, we believe its share price may not be re-rated on a sustainable basis given continued concerns over its weak fi nancial position. This is especially so given that its S$95mln 6.25% bond is coming due on 8 June’15 and another S$305mln bond coming due in mid-2016. Despite having raised $45.9mln from its recently concluded 1 for 2 rights issue at 15 cents a share, its debt of $1.167bln is hugely in excess of its cash holdings of $167mln.

Not helping matters is the fact that its 2017 7.125% bonds saw its coupon rate surge from 6.6% in Nov’14 to 15.9% last week, effectively shutting the company out of debt markets. While a company spoke person told Business Times that the company was confident to meet their financial obligations when it comes due, the debt market suggests otherwise. Swiber’s distressed financial position is reflected in that fact that its share price is currently trading at close to 90% discount to its net asset value."