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SEMBCORP COMPLETES DIVESTMENT OF STAKE IN SEMBSITA PACIFIC Singapore, November 6, 2015 – Further to its announcement of September 21, 2015, Sembcorp Industries (the Group) wishes to announce that its wholly-owned subsidiary, Sembcorp Environment, has completed the divestment of its 40% stake in SembSita Pacific to Suez Environnement Asia. The Group will recognise a net gain of approximately S$350 million for the financial year ending December 31, 2015 from this transaction. With the completion of this divestment, SembSita Pacific and its entities now cease to be part of the Group.
http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com
With this divestment, the full year results should be decent.
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(06-11-2015, 10:52 PM)Yoyo Wrote: SEMBCORP COMPLETES DIVESTMENT OF STAKE IN SEMBSITA PACIFIC Singapore, November 6, 2015 – Further to its announcement of September 21, 2015, Sembcorp Industries (the Group) wishes to announce that its wholly-owned subsidiary, Sembcorp Environment, has completed the divestment of its 40% stake in SembSita Pacific to Suez Environnement Asia. The Group will recognise a net gain of approximately S$350 million for the financial year ending December 31, 2015 from this transaction. With the completion of this divestment, SembSita Pacific and its entities now cease to be part of the Group.
http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com
With this divestment, the full year results should be decent.
One off quality of earnings not fantastic...
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(06-11-2015, 11:21 PM)greengiraffe Wrote: (06-11-2015, 10:52 PM)Yoyo Wrote: SEMBCORP COMPLETES DIVESTMENT OF STAKE IN SEMBSITA PACIFIC Singapore, November 6, 2015 – Further to its announcement of September 21, 2015, Sembcorp Industries (the Group) wishes to announce that its wholly-owned subsidiary, Sembcorp Environment, has completed the divestment of its 40% stake in SembSita Pacific to Suez Environnement Asia. The Group will recognise a net gain of approximately S$350 million for the financial year ending December 31, 2015 from this transaction. With the completion of this divestment, SembSita Pacific and its entities now cease to be part of the Group.
http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com
With this divestment, the full year results should be decent.
One off quality of earnings not fantastic... This is a joke? This is 350m$ of real money. This is like when u made an investment in a real estate and sold it off later for 300+% gain and u tell yourself that this is nothing fantastic.
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Can pay off debt using this sum of money. With huge capex in the last couple of years in brazil for marine and india for utilities projects (from $2b to $4b in the last yr alone), I guess it would be good for SCI to pare down their debt, with their current d/e at 75%.
One of their associates, Cosco, is not doing well and has issued profit guidance recently. by and large, marine not doing well..
Winston Churchill:-
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”
"The farther backward you can look, the farther forward you are likely to see."
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Almost half of SCI's debts and cash are from its 61% owned subsidiary, SCM. I don't think SCM will be generating enough cash flow to pay down its CAPEX for Brazil and Tuas Phase 1 in the next few years. Any debt repayment at SCM most probably has to come from a rights issue with its parent taking up a huge portion.
COSCO Spore is most probably on its way to be privatized by the SOC and will be another source of cash when it happens.
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(07-11-2015, 09:48 AM)boochap Wrote: (06-11-2015, 11:21 PM)greengiraffe Wrote: (06-11-2015, 10:52 PM)Yoyo Wrote: SEMBCORP COMPLETES DIVESTMENT OF STAKE IN SEMBSITA PACIFIC Singapore, November 6, 2015 – Further to its announcement of September 21, 2015, Sembcorp Industries (the Group) wishes to announce that its wholly-owned subsidiary, Sembcorp Environment, has completed the divestment of its 40% stake in SembSita Pacific to Suez Environnement Asia. The Group will recognise a net gain of approximately S$350 million for the financial year ending December 31, 2015 from this transaction. With the completion of this divestment, SembSita Pacific and its entities now cease to be part of the Group.
http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com
With this divestment, the full year results should be decent.
One off quality of earnings not fantastic... This is a joke? This is 350m$ of real money. This is like when u made an investment in a real estate and sold it off later for 300+% gain and u tell yourself that this is nothing fantastic.
http://www.valuebuddies.com/thread-6731-...#pid121520
When u consider Superman busy looking for deals in Europe and Down Under and SCI selling out of Down Under to invest in high risks supposedly high returns emerging markets... u can decide for yrself if the fun mgrs within SCI are jokes or not...
So far SCI's utilities division has yet to deliver the stable earnings profile despite having the division for years.
With Sembmarine facing huge headwinds... $350m real $ will be gone with the wind very soon...
YMMV
GG
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Yup, rights issue may probably happen because of cash flow. Though order book for SMB has picked up somewhat slightly (via-a-vis last year) with a couple of deals (one of which is from Maersk) recently, they will need customers to stop deferring the delivery of oil rigs and start receiving monies soon..
Some ratios of SMB:-
Avg day inventory: 130 145 186 239
Avg cash conversion: 24 48 100 164
D/E ratio: 13 28 55 90
Yup, I am concerned but I am learning from this as well. 
Winston Churchill:-
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”
"The farther backward you can look, the farther forward you are likely to see."
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07-11-2015, 05:30 PM
(This post was last modified: 07-11-2015, 05:31 PM by greengiraffe.)
(07-11-2015, 03:37 PM)Art or Science Wrote: Yup, rights issue may probably happen because of cash flow. Though order book for SMB has picked up somewhat slightly (via-a-vis last year) with a couple of deals (one of which is from Maersk) recently, they will need customers to stop deferring the delivery of oil rigs and start receiving monies soon..
Some ratios of SMB:-
Avg day inventory: 130 145 186 239
Avg cash conversion: 24 48 100 164
D/E ratio: 13 28 55 90
Yup, I am concerned but I am learning from this as well.
Deferring is an initial step by major rig operators... cancellation is a tough reality... I stand corrected... my experience as an newbie analyst covering KFELS for offshore sector started analysing with FPSOs and their viability with zero rig orders for years before I even started in the industry... ended up shooting down VDHorst ran by Ex Salim linked Kotjo operated by Peter Lim due to polluted power barges generating power in Phillippines...
Dark ages are back for Singapore offshore sector due to the problems of high costs, industry grinding to a halt and structural competitive advantage shift - no more ship building and repairs...
No eyes see...
KepCorp Sembcorp M&A will be on the cards...
GG
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Have all bad news out SCI ?
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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(07-11-2015, 01:36 PM)greengiraffe Wrote: (07-11-2015, 09:48 AM)boochap Wrote: (06-11-2015, 11:21 PM)greengiraffe Wrote: (06-11-2015, 10:52 PM)Yoyo Wrote: SEMBCORP COMPLETES DIVESTMENT OF STAKE IN SEMBSITA PACIFIC Singapore, November 6, 2015 – Further to its announcement of September 21, 2015, Sembcorp Industries (the Group) wishes to announce that its wholly-owned subsidiary, Sembcorp Environment, has completed the divestment of its 40% stake in SembSita Pacific to Suez Environnement Asia. The Group will recognise a net gain of approximately S$350 million for the financial year ending December 31, 2015 from this transaction. With the completion of this divestment, SembSita Pacific and its entities now cease to be part of the Group.
http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com
With this divestment, the full year results should be decent.
One off quality of earnings not fantastic... This is a joke? This is 350m$ of real money. This is like when u made an investment in a real estate and sold it off later for 300+% gain and u tell yourself that this is nothing fantastic.
http://www.valuebuddies.com/thread-6731-...#pid121520
When u consider Superman busy looking for deals in Europe and Down Under and SCI selling out of Down Under to invest in high risks supposedly high returns emerging markets... u can decide for yrself if the fun mgrs within SCI are jokes or not...
So far SCI's utilities division has yet to deliver the stable earnings profile despite having the division for years.
With Sembmarine facing huge headwinds... $350m real $ will be gone with the wind very soon...
YMMV
GG
There's truly nothing much to brag about when this 350m is a one-off profit while the marine arm is bleeding badly.
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