Singapore Shipping Corp

[guru]

Sell was at 23.5c vs 23c now. maybe i should post a few more times and the price will come down another tick more.

A question: When there's only 1 lot on the Sell Volume @ 23.5c, does it mean only 1 lot is available?

If I were to key in buy order for 10 lots @ 23.5c, does that means I only get 1 lot and may need to wait for the remaining 9 lots?


Thanks!

Singapore Shipping Corp is now Ship Chartering PLUS Logistics services company.

Cougar Logistics business is a cash cow.

In time to come, we will see the potential of this company.

It can also mean there may not be many sellers.

[Nick]

SSC has uploaded their Annual Report 2013 into SGX and its makes a fascinating read. Its core business is easily understood since it only owns 4 vessels (including 1 with 30% stake) of which 2 are wholly owned and on long term time charter till 2025/26 generated US$15 million revenue annually.

There was little surprise in the Annual Report until I chanced upon Note 30 (pg 90 - 92) in the report which gave additional details on the recently completed M&A of the former Cougar Logistics assets for S$15 million (or US$12.0 million). Apparently, the acquired subsidiary is holding on to US$7.0 million worth of cash hence the actual net cash cost of the acquisition is US$5.0 million. This is a rather attractive price considering the asset has been generating S$3 million net profit in recent years. Please correct me if I misinterpreted the data in the Annual Report.

(Not Vested)

[camelking]

one wonder why the ex-owner of cougar Logistics sold such good business to SSC at such a low price....
I read the rationale given is to concentrate on logistics warehousing or something like that
Make sense?

Vested

[Drizzt]

the terms of the sale is indeed surprising.

but we wonder if it can continue to generate SGD 2 mil in profits.

the loss of their very old ship could amount to USD 1 mil as indicated so this 2 mil will more or less off set that loss.

wonder how much synergy or optimization can be done to this.

[Drizzt]

anyone at the agm, are they scraping or renewing the charter for the aging ship? thanks alot in advance

[Nick]

SSC reported 2Q earnings of US$2.27 million with 1H 2014 EPS hitting 1.0 US cents. This is primarily due to the acquisition of the former Cougar Logistic assets at an really attractive price. I suspect EPS will be close to 2.0 US cents (loss of income by Singa Ace in 4Q 2014 but lower dry docking expense for the 2 core vessels) for FY 2014. It will be great if dividends were raised to 1.5 cents though if he chooses to retain capital for fleet expansion, its fine too.

1) A vessel faced a decline in charter hire rates - is this the Singa Ace vessel ?

2) The Group is acquiring a 10 year old vessel which will be chartered out upon delivery next year.

http://infopub.sgx.com/FileOpen/SSC30091...eID=263562 [2Q 2014]

(Vested)

[camelking]

There is no disclosure on the yield from the purchase and chartering of 10 year old vessel.

Vested

[kagemusha]

smart business by Ow.
Spin off Cougar from SSC, then sell off at profit, now buy back at discount.
I also want to do this kind of business.

[valuebuddies]

From the latest result, it seems that the cougar assets are generating additional US$1.2m NPAT semi-annually, the potential loss of profit from the expiring of charters with Mitsui is estimated to be US$1.5m annually. Assume that the 2 vessels did not contribute any revenue or profit in FY2015, I still expect a US$900k increase in the NPAT, not yet counting the contribution from the new vessel which scheduled to deliver next year. I do worry about the lower charter rate that it might secure for the new vessel because of the current gloomy shipping market. I am not sure if these specific vessel are affected but I guess the charter rate will be definitely much stable comparing to container ship charters.

[camelking]

which is why i am curious about the yield from the new vessel......

But knowing Senior Ow, he won't commit into loss making deals...