SembCorp Marine

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#11
Perhaps a good time to start accumulating again some more.
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#12
(03-04-2013, 03:27 PM)mulyc Wrote: any reason why the stock price is trending downwards? prospects are so bright, market leader and orders are pouring in. while margins are a squeezed right now, clients seem to be queuing up with rig orders.

Could it be due to the lower Special Dividend declared?

FY12 : 5ct (Interim) + 6ct (Final) + 2ct (Special)
FY11 : 5ct (Interim) + 6ct (Final) + 14ct (Special)

At yesterday's close of $4.33, Yield = 3%. Considering that their biz is not in the Growth industry, but rather, a cyclical one, I suppose a 3% Yield is not too attractive? This is vs 5.77% for FY11 payout.

PS. I imagine I see the share price sliding from $4.73 (21-Feb : Results Annc) onwards.
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------
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#13
Always sad to see it creeping downwards...
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#14
SembMarine (S51.SG) is up 0.7% at $4.29, slightly outperforming the STI's 0.4% rise, despite reporting 1Q13 net profit of $118.7 million, up 5% on-year, but below some analysts' expectations.

"The revenue was a bit light for the quarter, but margins recovered a bit from the previous quarter," says Vincent Fernando, an analyst at Religare Capital, adding the market is likely relieved there wasn't a repeat of the fourth-quarter margin. But he notes, "the long-term outlook for margins is still down; it's hard to extrapolate any major margin recovery," adding, SembMarine is also still warning about competition and margin pressure ahead.

Orderbook quotes suggest the stock isn't likely to retest its $4.32 intraday high.
Patience is a virtue.
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#15
Sounds abit overly optimisitc, but I hope it cheongs nonetheless!


SEMBCORP MARINE | BUY

6 May 2013
PICK UP A QUALITY STOCK ON THE CHEAP

- Results in line
- Uptick in margins
- Quality stock to hold

Sembcorp Marine (SMM) reported a 11.4% YoY rise in revenue to S$1.05b and a 5% increase in net profit to S$118.7m in 1Q13, both accounting for about 20% of our full year estimates and in line with our expectations. Operating margin increased from 10.8% in 4Q12 to 13.7% in 1Q13, and the significant uptick could be partly because revenue recognition of the Sete Brasil drillship in the last quarter was not very significant. Management reiterated that enquiries remain healthy across the various business segments. SMM’s share price has underperformed the STI by about 15% YTD although there has been no change in the company’s fundamentals. In our view, investors seeking to hold a quality company for the longer term would find value in SMM. Maintain BUY with S$5.64 fair value estimate.
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#16
(07-05-2013, 09:24 AM)mulyc Wrote: Sembcorp Marine (SMM) reported a 11.4% YoY rise in revenue to S$1.05b and a 5% increase in net profit to S$118.7m in 1Q13, both accounting for about 20% of our full year estimates and in line with our expectations. Operating margin increased from 10.8% in 4Q12 to 13.7% in 1Q13, and the significant uptick could be partly because revenue recognition of the Sete Brasil drillship in the last quarter was not very significant. Management reiterated that enquiries remain healthy across the various business segments. SMM’s share price has underperformed the STI by about 15% YTD although there has been no change in the company’s fundamentals. In our view, investors seeking to hold a quality company for the longer term would find value in SMM. Maintain BUY with S$5.64 fair value estimate.

The first 2 drillships will only be delivered in mid 2015 and it is supposed to be built by Estaleiro Jurong Aracruz (target to complete by end 2014, although it might complete it earlier). It seems pretty impossible for Estaleiro Jurong Aracruz to churn out 2 drillships in <6months in Brazil but i also do not think that it is starting to recognise drillship revenue (by building it in Jurong shipyard) since 4Q2012.

The best possible reason for better QoQ margins is simply due to repeat designs like the Pacific Class400 and F&G turnkey semis coming into play.
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#17
Surprised many so called expert analysts have given a thumbs down on this stock. Have they ever looked at the company financial profile at all?

I would rate this as the stock of the year ! We are talking about the world's biggest deep sea rig building specialists. The offshore deep sea oil exploration would heighten with each passing year as land oil reserves diminish. There are loads of fossile fuel buried deep under the seabed.

Global demand for oil will increase in 3Q 2013, and oil price should rise dramatically from 2014.

This is an undervalued stock for now.
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#18
Hoping for good results for Q2!
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#19
PRESS RELEASE
1H 2013 NET PROFIT AT $243.6 MILLION
Singapore, August 1, 2013: Sembcorp Marine achieved a 1H 2013 net profit
of $243.6 million, 4.8% lower as compared with $255.9 million earned in the
first half of 2012. This was due mainly to the timing in recognition of projects,
the number of projects that achieved initial recognition as well as the value and
the design of rig building projects.
For 1H 2013, Group operating profit at $289.6 million was 3.4% higher as
compared with $280.0 million in 1H 2012. At pre-tax level, Group profit at
$305.1 million was 6.8% lower as compared with $327.5 million for the same
period in 2012.
Group turnover in 1H 2013 was $2,174.4 million. This was marginally higher
as compared with $2,159.6 million in 1H 2012 attributable to higher progressive
recognition of rig building projects in the first half of 2013, offset by lower
contributions from the conversion and offshore sector in 1H 2013.
Turnover from the rig building sector in 1H 2013 at $1,225.6 million was 15.9%
higher as compared with $1,057.7 million for the corresponding period in 2012.
One unit of accommodation semi-submersible rig achieved initial recognition in
1H 2013 as compared with three jack-up rigs (two jack-ups and one harsh
environment jack-up) for the corresponding period in 2012.
The conversion and offshore sector registered a decline of 19.1% in turnover at
$619.2 million in 1H 2013 with one unit of semi-submersible rig conversion
project and LNG modules fabrication achieving initial recognition as compared
with $765.1 million for the same period in 2012.
The turnover for the repair sector in 1H 2013 at $314.0 million was 2.4% lower
as compared with the corresponding period in 2012 due to timing in recognition
of repair projects.
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#20
PRESS RELEASE
SEMBCORP MARINE’S SEMBAWANG SHIPYARD SECURES (1) THE UPGRADING OF DIAMOND PRINCESS FROM PRINCESS CRUISES AND (2) WELCOMES PRINCESS CRUISES AS ITS LONG-TERM PARTNER UNDER THE FAVOURED CUSTOMER CONTRACT WITH CARNIVAL CORPORATION, USA

http://infopub.sgx.com/FileOpen/SCMPress...eID=259243
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