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SembCorp Marine- The new Frontier.
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Abe8888
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06-Jan-2021 18:00
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There are lots of business waiting... -
December 24, 2020, In the last few days of December 2020, South Korean shipbuilders are witnessing a surge in liquefied natural gas (LNG) carrier orders. https://www.offshore-energy.biz/korean-shipbuilders-report-lng-carrier-ordering-spree/ January 5, 2021
South Korean shipbuilding heavyweight Korea Shipbuilding & Offshore Engineering (KSOE) has won orders for a total of six containerships worth approximately $818.4 million (KRW 891 billion). https://www.offshore-energy.biz/ksoe-nets-order-for-6-containerships/ |
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Abe8888
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06-Jan-2021 12:18
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Sembcorp Marine
Weekly Short Sale Report 20201228 to 20210101 https://api2.sgx.com/sites/default/files/reports/short-sell/2021/01/ShortSellReport20201228to20210101.txt ShortSaleVolume 57,144,700 ShortSaleValue SGD$8,167,322.80 Shorts Volume went down with prices going up since Christmas. A little short-covering i guess.
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ADS2200
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05-Jan-2021 23:42
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Better, you are right and it is the most recent quarter (mrq)
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| Total cash (mrq) | 1.11B |
| Total cash per share (mrq) | 0.53 |
| Total debt (mrq) | 5.63B |
| Total debt/equity (mrq) | 279.35 |
| Current ratio (mrq) | 0.93 |
| Book value per share (mrq) | 0.95 |
better ( Date: 05-Jan-2021 21:07) Posted:
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Elite
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During the dark days of SMM a few months back, we would see it close 14.8 or 14.9 instead of closing with a 5 handle, based on today' s market action.
Pretty decent support.
Elite
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Pre rights issue cash balance- 1.1 billion (Search yahoo finance for S51. Click on statistic. Scroll down to " total cash" tab)
Cash from rights issue- 600mil
Government Covid aids paid out in cash- estimated 50 to 100mil
Cash from projects completion- a couple of projects completed in 2020. estimated about 200-300 mil which is cash flow positive.
For those who understanding accounting principle, the losses reported in 2020 are mostly non cash events, accelerated depreciation of yard/ equipment value. Mainly to push through the rights issue and the upcoming merger. In pther words, Sembmarine need not report a loss if they don' t want to. This is called creative accounting.
Likewise for Keppel O& M.
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jesmarnew ( Date: 05-Jan-2021 10:29) Posted:
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Supreme
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where is your Analysis NOT predictions!
jesmarnew ( Date: 05-Jan-2021 10:29) Posted:
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Supreme
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pkli899 ( Date: 05-Jan-2021 10:47) Posted:
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Supreme
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If it' s junk, 1 c also cannot buy mah.
Care to explain?
jesmarnew ( Date: 05-Jan-2021 10:29) Posted:
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Supreme
Yells: "What I say is just my assessment. DYODD"
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And why are you here so often to talk about this counter?
jesmarnew ( Date: 05-Jan-2021 10:29) Posted:
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Supreme
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Not surprise to see it close green today.
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Elite
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Trade safe and DYODD!
Elite
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That is the reason why Temasek is bend on the merger.
As Temasek will need to pay Keppel to buy a part of the Keppel O& M or subscribe to SMM shares with cash, that cash transaction will provide a value to SMM and Keppel O& M.
The cash transaction by Temasek will likely value SMM at about 1.5 times book value or 45 cents per share. Because if the offer is too low, SMM shareholders can veto the deal then it will be a no go.
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LuckyCharm_SMS ( Date: 05-Jan-2021 08:39) Posted:
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better ( Date: 04-Jan-2021 23:56) Posted:
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Elite
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Also much easier to get SMM sharehodlers to agree to absorb Keppel O& M then to get them to agree to sell out their shares when SMM is in totally no financial duress.
The chain of event that I described is the most logical and easiest to execute. Time is of essence here. So need to get everything done chop chop as the offshore boom is just around the corner.
But after SMM absorb Keppel O& M, they can take up the name I proposed a few months back- Singapore Offshore and Renewable.
Nowadays, with ESG investing in vogue, any company with the name tag " renewable" can sell for a few times more.
Elite
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Or would the set up be like the Capitalmall trust where just one get delisted
better ( Date: 04-Jan-2021 23:07) Posted:
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Elite
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As mentioned a week ago, the likely chain of events should start with Temasek buying over a portion of Keppel O& M with cash. Then Sembmarine issues new shares (non cash event) to Keppel Corp and Temasek to absorb Keppel O& M.
The problem is finding the right price for Keppel Corp and Sembmarine shareholders to agree.
I think the right price which all parties can accept and not too out of character for Temasek' s stingy nature should be about 1.5x book value.
So, if a merger were to be tabled in the next few weeks,, it should value Sembmarine at about 45 cents per share.
That would be the beginning of the journey into the new frontier.
Now, the last piece of the puzzle is the progress of the Hyundai heavy and DSWE merger which is still pending EU antitrust body' s approval. But I don' t think Temasek can wait much longer as the offshore boom is right about now. Miss this window and the next opportunity will be in 10+yrs time.