Swissco Holdings

[crabcrab]

Swissco ($0.193) - Very few oil and gas companies are still able to achieve such full year profitable results. Likely at current price, it is considered grossly undervalued based on FY2015 results and other factors. Perhaps, time to accumulate... (Caveat Emptor) Good Luck!

[BlueKelah]

Swissco ($0.193) - Very few oil and gas companies are still able to achieve such full year profitable results. Likely at current price, it is considered grossly undervalued based on FY2015 results and other factors. Perhaps, time to accumulate... (Caveat Emptor) Good Luck!

what a difference half a year makes, share price now $0.054. Would have done very well shorting the stock..

There is usually a lag between low commodity / oil prices and profitability as prior profitable contracts/orders are filled. Then comes the losses and negative cash flows., always keep an eye on the debt levels, that's what usually causes things to go sideways very quickly.


Singapore Junk Bonds Slump as Swissco Seeks Restructuring

Singapore’s junk-bond market is suffering its worst rout in at least four years as debt restructurings spread among shipping and oil-and-gas service companies.

High-yield notes in the local currency from borrowers in Singapore slid 1.9 percent last quarter, the most in an IHS Markit Ltd. index going back to 2012. Rig and vessel chartering group Swissco Holdings Ltd. added to the list of firms seeking to reorganize debt Tuesday. It appointed Ernst & Young Solutions LLP to assist in the refinancing and restructuring of S$100 million ($73 million) of notes maturing in 2018, according to an exchange filing.

“The refinancing plan is to allow the company to have an optimized debt structure, with sufficient time to manage its liabilities and growth in the present industry conditions,” Swissco said in the statement. The company is also engaging in discussions with bank lenders and holders of preference shares of two units in the group, it said.

Three bond defaults in the past year and at least seven restructuring proposals have shaken Singapore’s local debt market, prompting the government to tighten oversight of private banks and aid businesses caught up in a global oil and shipping slump. PT Trikomsel Oke, Pacific Andes Resources Development Ltd. and Swiber Holdings Ltd. have missed payments on S$875 million of local notes since November.
Rickmers Maritime, AusGroup Ltd., Marco Polo Marine Ltd. and Perisai Petroleum Teknologi Bhd. are also in various stages of seeking leniency from creditors.
“What they are all doing now is trying to push back the maturity of the bonds, conserve the cash,” said Joel Ng, an analyst in Singapore at KGI Fraser Securities Pte. “Charter rates are still weak. Even if they want to dispose assets to pay back debt I think it remains challenging for now.”

Swissco sold the 5.7 percent notes in October 2014 in a deal managed by Oversea-Chinese Banking Corp., according to Bloomberg data. The securities were last quoted at 47.5 Singapore cents on the dollar, according to prices from DBS Bank Ltd. The company will hold an informal meeting with note holders on Oct. 10, before the next coupon payment on Oct. 16.

Bloomberg

[BlueKelah]

Just noticed yesterday, 10 Oct 2016 Request for trading halt.

[cyclone]

Debt-ridden Swissco's lack of plan draws ire

An informal meeting with bond holders called by Swissco Holdings ended in acrimony yesterday when the firm said it could not pay out a $2.85 million coupon due next Friday and had no plans for its next course of action.

Bond holders who had each sunk about $250,000 into the notes two years ago were told that Swissco faced a US$147.5 million (S$202.7 million) bank debt maturing from now until 2020. They also heard how the firm has cash holdings of just US$1.2 million and a monthly cash burn of US$1.5 million.

Four of its seven drilling rigs are off-charter, while three that are 50 per cent owned by Ezion are out on hire but the charterer has not been making payments, Swissco said.

...

More details in http://www.straitstimes.com/business/deb...-draws-ire

[crabcrab]

Swissco ($0.193) - Very few oil and gas companies are still able to achieve such full year profitable results. Likely at current price, it is considered grossly undervalued based on FY2015 results and other factors. Perhaps, time to accumulate... (Caveat Emptor) Good Luck!

what a difference half a year makes, share price now $0.054. Would have done very well shorting the stock..

There is usually a lag between low commodity / oil prices and profitability as prior profitable contracts/orders are filled. Then comes the losses and negative cash flows., always keep an eye on the debt levels, that's what usually causes things to go sideways very quickly.


Singapore Junk Bonds Slump as Swissco Seeks Restructuring

Singapore’s junk-bond market is suffering its worst rout in at least four years as debt restructurings spread among shipping and oil-and-gas service companies.

High-yield notes in the local currency from borrowers in Singapore slid 1.9 percent last quarter, the most in an IHS Markit Ltd. index going back to 2012. Rig and vessel chartering group Swissco Holdings Ltd. added to the list of firms seeking to reorganize debt Tuesday. It appointed Ernst & Young Solutions LLP to assist in the refinancing and restructuring of S$100 million ($73 million) of notes maturing in 2018, according to an exchange filing.

“The refinancing plan is to allow the company to have an optimized debt structure, with sufficient time to manage its liabilities and growth in the present industry conditions,” Swissco said in the statement. The company is also engaging in discussions with bank lenders and holders of preference shares of two units in the group, it said.

Three bond defaults in the past year and at least seven restructuring proposals have shaken Singapore’s local debt market, prompting the government to tighten oversight of private banks and aid businesses caught up in a global oil and shipping slump. PT Trikomsel Oke, Pacific Andes Resources Development Ltd. and Swiber Holdings Ltd. have missed payments on S$875 million of local notes since November.
Rickmers Maritime, AusGroup Ltd., Marco Polo Marine Ltd. and Perisai Petroleum Teknologi Bhd. are also in various stages of seeking leniency from creditors.
“What they are all doing now is trying to push back the maturity of the bonds, conserve the cash,” said Joel Ng, an analyst in Singapore at KGI Fraser Securities Pte. “Charter rates are still weak. Even if they want to dispose assets to pay back debt I think it remains challenging for now.”

Swissco sold the 5.7 percent notes in October 2014 in a deal managed by Oversea-Chinese Banking Corp., according to Bloomberg data. The securities were last quoted at 47.5 Singapore cents on the dollar, according to prices from DBS Bank Ltd. The company will hold an informal meeting with note holders on Oct. 10, before the next coupon payment on Oct. 16.

Bloomberg

Swissco ($0.00 - Trading Halt) - On paper back in Feb 2016, in absolute asset valuation notwithstanding the macro-operating environment,  Swissco book was still looking quite good. But the fast depletion of its cash holdings did raised some of the concern then. It is definitely great disappointment that Swissco has become a new casualty of the oil glut. Probably, it is game over for now....

[CY09]

In the O&G space, its no longer the balance sheet but the cashflow.

Many companies have wonderfully priced assets in its B/S which are not generating a high ROA to their reported book value. The billion dollar question for many of us is how much are their assets really worth. We have seen Ezra trying to sell off its assets to raise cash but in the process doing impairments.

It is going to be the same to the rest. How much is the true worth of their PPE? Time will only reveal when they cant repay their debts.

There is a good article written by blogger, Rolfsuey. In it, it details when each company bonds are due. This is especially important because currently, retailers are unwilling to subscribe to new bonds to replace old ones. a lot of O&G bonds are due in 2018 and that's when true reckoning will happen. Swissco was a bit of a surprise because it didn't even last past the interest repayment stage.

http://www.rolfsuey.com/2016/08/oil-and-...-whos.html

[brattzz]

the longer it drags on, the less the PPE worth is....
10cts to a dollar worth is the maximum!

[BlueKelah]

the longer it drags on, the less the PPE worth is....
10cts to a dollar worth is the maximum!

Some of these PPE give for free also no one wants since there will be high maintaneance costs. Can imagine all these offshore stuff the salt-water and hot sun causes rapid corrosion and deterioration if things are not maintained well.

[desmondxyz]

Mandatory suspension.

Another O&G company gone...

[BlueKelah]

Yup officially suspended from trading, not just halt for a while.

http://infopub.sgx.com/Apps?A=COW_CorpAn...olders.pdf



Forgot to add, Swissco jialat liao lah lol... ;D

-not vested-