AP Oil

[ghchua]

FY16: 1.25cts - 0.5cts for FY15 (declared as interim for FY16) + 0.75cts final dividend for FY16.
FY15: 0.5cts for FY14 (declared as interim for FY15)
FY14: 0.5cts for FY13 (declared as interim for FY14)

[sunview]

A summary of payouts from another website

   

[karlmarx]

I always thought interim dividends were paid for the same FY that it is declared in; i.e. Q1, Q2 or Q3.

Thanks to ghchua, I now understand that AP Oil has been declaring interim dividend for its future FY.

Going by its past pattern of distribution, does this mean AP Oil is not declaring an interim dividend for FY2017? Are they making changes to their distribution pattern?

[karlmarx]

The founder and chairman Ho Leng Woon will be away for a month due to medical reasons:

http://infopub.sgx.com/FileOpen/AP%20Oil...eID=446654

Is the younger Ho Chee Hon ready?

[dxdx]

He has already been running the company for quite some time now, and have been the "face" of it in any related news.

Ho Leng Woon has been taking a backseat for obvious reasons.

If anything, their succession planning seems pretty stable

[namralk]

I wonder if the recent rise in share price has something to do with this news?

http://www.petrolworld.com/asia/item/276...-agreement

"A supply agreement has been signed between Puma Energy, the globally integrated midstream and downstream energy company and AP Oil to blend its high-quality lubricant products, as it expands its offering across Middle East and Asia Pacific.

Puma Lubricants has made its presence known in 31 countries, following the successful introduction of the Puma Lubricants brand in Africa and the Americas. Puma Energy already has successful operations in the Middle East and Asia Pacific markets and the next expansion opportunity for the company is to market its Puma Lubricants brand in these regions."

This agreement should be similar to the previous deal with Sinopec, which ended when Sinopec built their own plant in 2013. Therefore AP Oil should not require additional capex for the new business with Puma. 

http://ir.zaobao.com.sg/apoil/news/apoil070607e.html

http://www.todayonline.com/business/sino...y-industry

It is also interesting to note that AP Oil current capacity is 60,000 tonnes per annum (source: KGI Fraser report, Jul 2016), market cap $46m (no debt, with cash of $38m). Sinopec spent $134m to build a new plant in Tuas in 2013 with 100,000 tonnes per annum. 

There is a also a new Lube Park opened in Singapore in 2016. No doubt AP Oil will face more competition but it seemed like a case of an expanding pie and independent lubricant manufacturer like AP Oil could benefit with partnerships with the likes of Puma Energy.

"The Asia-Pacific accounts for 44 per cent of the global market for finished lubricants. Demand in the region is expected to grow a 1.8 per cent on average over the next five years, fuelled by rising vehicle population and the shift of the major shipping industries to the Asia-Pacific."

https://www.iesingapore.gov.sg/Media-Cen...-Singapore

Puma Energy 

http://fueloilnews.co.uk/2016/03/the-eme...ma-energy/

[karlmarx]

When Puma Energy's lubricants gain market traction, they will perhaps build their own plant and end business with AP Oil, just as Sinopec did.

AP Oil has not released any information with regards to this deal, so it could be deemed non-material.

[karlmarx]

AP Oil posted a very poor set of results for HY17:

http://infopub.sgx.com/FileOpen/APO%20Ha...eID=466371

Net profit almost halved from $2.7m to $1.5m.

On the other hand, its competitor United Global has been done well for the same period:

http://infopub.sgx.com/FileOpen/UGL%20-%...eID=466311

Net profit grew a third from US$2.7m to US$3.6m.

It appears the market has been fair to price United Global at a higher multiple compared to AP Oil.

[Quickbeam]

The HY was poor, but I am guessing it is transitory and they screwed up their purchasing. A big downdraft in the share price could create an attractive opportunity.

[karlmarx]

Since 2009, oil prices have been volatile but AP Oil has been able to consistently turn in a stable profit, until this latest release of results.

This does not reflect well on the abilities of the new CEO.