CH Offshore

[Louhan]

Financial year ending 30 June. Dividends should be coming.

Here's a link to Hong Leong's research on a pure osv malaysia IPO (Icon Offshore). The size quite similar to CHO except that it is not pure AHTS and it lacks bigger size AHTS, net profit around the same. But the valuations are vastly different... It is an IPO after all.

The report does have some interesting day rates information for its vessels by type, BHP.

Icon Offshore Berhad
http://cdn1.i3investor.com/my/files/dfgs...306019.pdf

[smallcaps]

Financial year ending 30 June. Dividends should be coming.

Yep, it has arrived... 4 cents final dividend declared in FY14 result.
So total 4.5 cents for the FY, near the 4.75 cents declared in FY12.

Net cash has swelled up to US$80 mil, against a current market cap of around US$265 mil market cap.

Hope management can find a good way to deploy the cash to significantly increase earnings...

http://infopub.sgx.com/FileOpen/CHOresul...eID=307650

[Louhan]

Financial year ending 30 June. Dividends should be coming.

Yep, it has arrived... 4 cents final dividend declared in FY14 result.
So total 4.5 cents for the FY, near the 4.75 cents declared in FY12.

Net cash has swelled up to US$80 mil, against a current market cap of around US$265 mil market cap.

Hope management can find a good way to deploy the cash to significantly increase earnings...

http://infopub.sgx.com/FileOpen/CHOresul...eID=307650

Wa... Generous dividends!

[smallcaps]

Let's hope that this charter rate increase is a just a prelude, becoz its looks pretty significant. The AHTS that got this rate, BOS Topazio (built 2005) of bhp 12,240, is of similar bhp to 6 of CHO's wholly owned AHTS. Except that CHO's are younger with DP2, and have higher bollard pull.

Just to gauge the charter rate against CHO's, let's compute the amount of revenue CHO would derive from its 6 x 12,240 bhp vessels if they get the same charter rate.

BOS Topazio annual charter rate = US$ 60.7 mil / 4 years = 15 mil

CHO's 6 x 12,240 vessels total revenue would then be 90 mil

This is already 2.5 times when compared against CHO's FY14 total revenue of US$ 35 mil, and we haven even considered the 3 other smaller vessels that is wholly owned by CHO.

---

Farstad’s AHTS charter flags Brazil rates boost

Offshore specialist analyst at Swedbank estimate the vessel’s rate about NOK 275,000 ($42,000) per day, which they point out is a sizeable increase from its current rates in the low-$20,000s per day.

[smallcaps]

XD date for the 2+2=4 cents dividends is Nov 4:

http://infopub.sgx.com/Apps?A=COW_CorpAn...CrpSymSxst
http://infopub.sgx.com/Apps?A=COW_CorpAn...CrpYCmSxst

[cyclone]

As long as there is trial, there is hope.

In October 2013, the Group commenced legal proceedings in London against PDV Marina S.A. (“PDV Marina”) and Astilleros De Venezuela C.A. for a claim relating to outstanding charterhire amounting to approximately US$56 million (which amount includes interest claimed) in respect of the charter of the vessels the “Amethyst” and the “Turquoise”.

The Company arrested vessels belonging to PDV Marina as security for its claim. PDV Marina made payment of US$70 million into court as security for the Company’s claim including interest and costs. Accordingly, the Company released PDV Marina’s vessels.

The trial has been fixed on 20 April 2015.

[Bluechipfan]

As long as there is trial, there is hope.

In October 2013, the Group commenced legal proceedings in London against PDV Marina S.A. (“PDV Marina”) and Astilleros De Venezuela C.A. for a claim relating to outstanding charterhire amounting to approximately US$56 million (which amount includes interest claimed) in respect of the charter of the vessels the “Amethyst” and the “Turquoise”.

The Company arrested vessels belonging to PDV Marina as security for its claim. PDV Marina made payment of US$70 million into court as security for the Company’s claim including interest and costs. Accordingly, the Company released PDV Marina’s vessels.

The trial has been fixed on 20 April 2015.

If CH win the suit, US$56 million is almost 8 cents per share. The company balance sheet is strong and seems to have a clear plan for future management of its business. For these reasons, among others, I have decided to take a small long position in this counter.

Vested.

[Jacmar]

As long as there is trial, there is hope.

In October 2013, the Group commenced legal proceedings in London against PDV Marina S.A. (“PDV Marina”) and Astilleros De Venezuela C.A. for a claim relating to outstanding charterhire amounting to approximately US$56 million (which amount includes interest claimed) in respect of the charter of the vessels the “Amethyst” and the “Turquoise”.

The Company arrested vessels belonging to PDV Marina as security for its claim. PDV Marina made payment of US$70 million into court as security for the Company’s claim including interest and costs. Accordingly, the Company released PDV Marina’s vessels.

The trial has been fixed on 20 April 2015.

If CH win the suit, US$56 million is almost 8 cents per share. The company balance sheet is strong and seems to have a clear plan for future management of its business. For these reasons, among others, I have decided to take a small long position in this counter.

Vested.

Did you read the latest settlement by Exxon with PDVSA. Exxon only managed to get about 10% of what they are asking for after so many years. Exxon being an American co n deep pockets for the best lawyers can only get 10%. This hardly covers the interest lost on all those years. what do you think CHO being a Sgp co and not deep pockets can get out of the court case? I think if CHO can get the same 10% it would be good enough. If they manage to get any money it will be a bonus. I think you shouldn't be investing in CHO base on this but base on the underlying biz instead.

I don't see a clear plan for future mgt of the biz. Could you care to elaborate. What I see is that they are just milking the biz/boats with no growth of the biz. WYSIWYG

Ex-shareholder

[greengiraffe]

As long as there is trial, there is hope.

In October 2013, the Group commenced legal proceedings in London against PDV Marina S.A. (“PDV Marina”) and Astilleros De Venezuela C.A. for a claim relating to outstanding charterhire amounting to approximately US$56 million (which amount includes interest claimed) in respect of the charter of the vessels the “Amethyst” and the “Turquoise”.

The Company arrested vessels belonging to PDV Marina as security for its claim. PDV Marina made payment of US$70 million into court as security for the Company’s claim including interest and costs. Accordingly, the Company released PDV Marina’s vessels.

The trial has been fixed on 20 April 2015.

If CH win the suit, US$56 million is almost 8 cents per share. The company balance sheet is strong and seems to have a clear plan for future management of its business. For these reasons, among others, I have decided to take a small long position in this counter.

Vested.

Did you read the latest settlement by Exxon with PDVSA. Exxon only managed to get about 10% of what they are asking for after so many years. Exxon being an American co n deep pockets for the best lawyers can only get 10%. This hardly covers the interest lost on all those years. what do you think CHO being a Sgp co and not deep pockets can get out of the court case? I think if CHO can get the same 10% it would be good enough. If they manage to get any money it will be a bonus. I think you shouldn't be investing in CHO base on this but base on the underlying biz instead.

I don't see a clear plan for future mgt of the biz. Could you care to elaborate. What I see is that they are just milking the biz/boats with no growth of the biz. WYSIWYG

Ex-shareholder

Can't agree with you more. CHH has done well selling to Scomi when Msians were hungry for whatever reasons and bought back cheap from the same company for whatever reasons.

Of course, they are now contented with Falcon at the helm and keep milking it. CHO will stay where they are... not that their quality is bad but just that these real businessmen knows how tough the OSV markets are and have not been throwing good $ after bad.

Has anyone ever asked why the PE at Jaya bailed out at a discount to book value just when everything look so rosy only recently? PE that stupid meh?

The only forward for this tough industry is to replicate what Tan Kim Seng has done to Ezra, KS Energy, Ezion and Swissco.

Fortunately Peh is a good man and did not resort to such darling tactics. Boring but at least morally ethical.

Odd Lots
Vested
GG

[Nick]

If I recalled correctly, didn't CHO arrest vessels belonging to PDVSA and the latter had to cough up US$70 million to the court as security for the claims ? Wouldn't the receivables claims (if successfully awarded) come from this pool ?

I believe CHO exist as a cash-stream to the parent companies hence the generous dividend. Probably why it isn't choosing to expand its fleet. I might consider looking at it if they reveal more details on the charter profile of their fleet.

With that being said, pretty decent yield to their shareholders. Management has treated shareholders well thus far.

(Not Vested)