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Mercator Lines
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mazimaz10
Senior |
25-Oct-2010 17:32
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Anybody can advise what will be the coming result tomorrow? Good or bad? | ||||
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sureesh40
Senior |
06-Jul-2010 11:52
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Well BDI is very low, so don't know if it is a good contrarian play. Maybe grandmaster89 can advice.
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New123
Elite |
06-Jul-2010 11:29
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Any adv is it a good time to buy into this counter? | ||||
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freeme
Elite |
24-May-2010 10:30
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add 20lots at 0.265 | ||||
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grandmaster89
Veteran |
12-May-2010 14:19
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A pretty good set of results. 4Q
profits of US$13 million is the highest for the past 4 quarters
(excluding contribution from newly acquired vessel and the signing of 2
new contracts). A healthy dividend was declared. I daresay that this is
clearly the best managed shipping liner in SGX. No other shipping liner
walked away with a US$40 million profit in 2009 LOL. MERCATOR SINGAPORE REPORTS A NET PROFIT OF USD 40.7 million FOR THE FULL YEAR 2009-10 Singapore, May 12 , 2010 – Mercator Lines (Singapore) Limited (“Company”), a leading Indian-owned international dry bulk shipping company focused on high growth markets such as India and China, today announced a decline of 46% in net profits to US$ 40.7 million for the financial year ended March 31, 2010 (“FY2010”), as compared to US$ 75.8 million for the corresponding period. Highlights: · EBITDA declines by 29% TO US $ 82 million · Full Year Revenue decreases by 22% to US$ 144.5 million · Fourth Quarter Revenue increased by 9% to US $ 39 Million · Proposed dividend of 1.16 Singapore cents per share - 25% payout ratio · Cash Balance of USD 35 million and Debt to Equity ratio at 0.66 The Group`s revenues for the full year FY2010 declined by 22% to US$ 144.5 million from US$ 186.1 million in FY2009. This decline is primarily attributed to decline in the spot market rates and renewal of long term charters at rates lower than FY 2009. The Time Charter Equivalent (“TCE”) rate per vessel per day, decreased to US$ 27,605 for FY2010 down by 34% from US$ 41,886 in the previous corresponding period. Total number of vessel operating days recorded a rise of 15% to 4,703 days in comparison to 4,084 days in FY2009. For the fourth quarter ended March 31, 2010, the Group`s revenue surged by 9% to US$39.3 million from US$ 36.2 million while the net profits dropped by 11% to US$13 million compared to fourth quarter ended March 31, 2009. The drop in profits is on the back of decline in TCE rates by 12% to US$ 29,681 which was due to renewal of new long term charters at rates lower than those in FY 2009. The Board of Directors has proposed a tax-exempt final dividend of 1.16 Singapore cents per share representing a payout ratio of 25%. compared with 12.5% payout last year. The dividend is proposed to be paid through Scrip Dividend Scheme. Under the scheme, shareholders will have the option to receive shares instead of cash dividends. The option can be exercised by shareholders in part or whole of their shareholdings. Issue price of shares is determined on a prescribed formula based on the market price. The scheme is applicable subject to statutory and shareholders approvals. Said Mr. Shalabh Mittal, Managing Director and Chief Executive Officer of Mercator: “We are happy to end the year with a Net Profit of USD 41 million with a strong balance sheet with USD 35 million in cash and lower debt to equity at 0.66. Considering the volatility in the last 12 months, Mercator did well with renewing contracts with existing customers while developing new ones. “We are happy to propose to share a much higher proportion of our profits with our shareholders this year by maintaining the same dividend of 1.16 SGD cents per share as last year.” concluded Mr. Mittal. With the markets stabilizing, Mercator is poised and ready to explore further growth opportunities and deploy its young and modern fleet in the high growth markets it serves . Continuing with the trend of hedging its risks against market fluctuations, the company recently renegotiated two of its contracts with existing customers. In a unique deal, the company capped the downside by agreeing on a floor rate while keeping the upside open by means of profit sharing above a certain level. As part of its expansion plans, the company acquired a modern gearless Panamax bulk carrier, ‘Gauri Prem’. The three year old vessel was acquired for a total consideration price of about US$ 38 million. The vessel has been fixed on a long term charter contract for three years with a reputed customer at a daily hire of USD 22,250 per day. The contract would generate revenues of about at USD 24 million. Mercator’s most recent accomplishment was winning the Best Annual Report (Bronze) award for 2009 in the "$300 million to less than $1 billion market capitalization'' category for the second consecutive year. Mercator’s endeavors in maintaining high corporate governance was recently recognized by its 23rd ranking among 680 public listed companies in Governance and Transparency Index (GTI) in the Issue-3 exercise jointly conducted by The Business Times and the Corporate Governance and Financial Reporting Centre(CGFRC) at National University of Singapore (NUS), recently released in April 2010. The award and the ranking emphasizes our drive for excellence and our commitment towards better corporate governance. With this, we strive to extend and enhance our accountability and responsibility towards all our shareholders and to become an organisation of world class practices. |
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grandmaster89
Veteran |
03-May-2010 19:07
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DATE OF RELEASE OF AUDITED
FINANCIAL RESULTS
FOR THE YEAR ENDED 31 MARCH 2010
The Board of Directors of Mercator Lines (Singapore) Limited (the “Company”) wishes to announce that the Company will be releasing its audited financial results for the Financial Year ended 31 March 2010 on Wednesday, 12th May 2010. The results will also be available on the Company's website at www.mllsg.com About Mercator Lines (Singapore) Limited Mercator Lines (Singapore) Limited is a leading Indian–owned international dry bulk shipping company focused on markets such as India and China with specialization in transportation of commodities such as coal and iron ore to and from countries like India, Indonesia, China, Brazil. With the strong support from its ultimate parent company Mercator Lines Limited (“MLL India”), Mercator Lines Singapore provides customized end-to-end logistic solutions from the load port to the point of usage in India. Helmed by an experienced management team with in-depth understanding of the industry, Mercator Lines Singapore has timely expanded its total operating fleet size to 14 modern and versatile vessels. The Company serves a geographically spread customer base including blue chip customers mostly on long term contracts, ensuring its revenue visibility. Mercator Lines (Singapore) Limited, which commenced operations in 2005, was listed on SGX-ST on December 14 2007. Detailed information on Mercator Lines (Singapore) Limited is available on www.mllsg.com For and on behalf of Mercator Lines (Singapore) Limited Shalabh Mittal Managing Director & CEO 03rd May, 2010 |
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grandmaster89
Veteran |
29-Apr-2010 18:15
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MERCATOR SINGAPORE FURTHER STRENGTHENS ITS LONG TERM ORDERBOOK · Fixes one vessel on a two year contract structured to lock the downside while keeping part of the upside open · Fixes second vessel on a two year contract at USD 24,000 per day. · Both contracts with existing customers. Singapore, April 29, 2010 – Mercator Lines (Singapore) Limited (“Mercator”), a leading Indianowned international dry bulk shipping company focused on markets such as India and China, is pleased to announce that it has chartered out vessels on long term contracts to leading dry bulk commodity players. In the first deal, the company fixed its modern gearless Kamsarmax, Prem Veena with an existing Steel Major Customer thereby further strengthening its order book. The contract is a structured deal aimed at keeping part of the upside open while protecting the downside. The Charter rate shall be at a minimum time charter equivalent (TCE) of USD 20,000 per day. The deal is structured in a manner that the earnings would be linked to the 4 TC average of Baltic Panamax Index and all earnings between USD 20,000 per day and USD 25,000 per day would be earned by Mercator while any earnings above USD 25,000 per /day, would be shared equally between Mercator and the Charterer. The two year charter commenced in April 2010. For the second contract, Mercator has deployed its geared Panamax vessel, Kalpana Prem at TCE of USD 24,000 per day for a period of two years starting April 2010. The contract again is with an existing customer where the company was able to leverage its unique positioning of having one of the world’s largest geared Panamax fleet. Said Mr. Shalabh Mittal, Managing Director and Chief Executive Officer of Mercator, “We are delighted to secure these contracts with our existing customers. The dry bulk market has performed well during this year on the back of the strong Asian demand; we decided to take advantage of the market to lock in further capacity on long term contracts, structured to capture some upside if the market continues to rise. Mercator has always followed the strategy of locking substantial capacity on the long contracts with reputable end user customers. This strategy has proven to be a prudent one especially in the volatile times like we have seen in the last two years” concluded Mr Mittal. The Company had earlier announced its expansion plans to acquire a modern gearless Panamax for about USD 38 million which would also be deployed on a 3 year contract. The vessel is expected to be delivered in first week of May 2010. Mercator Lines (Singapore) Limited ranked 23rd among 680 public listed companies in Governance and Transparency Index (GTI) in the Issue-3 exercise jointly conducted by The Business Times and the Corporate Governance and Financial Reporting Centre(CGFRC) at National University of Singapore (NUS), recently released in April 2010. This puts the company among the most elite companies in Singapore in terms of corporate governance. This will bring in a minimum revenue of US$14.6 million annually. Next announcement to look forward to will be a new contract for its soon to be delivered post panamax vessel. |
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alvios
Member |
19-Apr-2010 15:11
Yells: "Have A Nice Day !" |
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price sinking... good time to buy more again...? |
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grandmaster89
Veteran |
14-Apr-2010 17:23
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FY 10 results and dividend announcement should be out in 4-6 weeks time right ? | ||||
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sureesh40
Senior |
14-Apr-2010 16:28
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Does mercator give out dividends. if it does, when |
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alvios
Member |
14-Apr-2010 12:06
Yells: "Have A Nice Day !" |
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finally started moving liao. todays closing most likely to have a clear break-out on chart. also crossing clearly above the 200dma. Had dump some for profit today. hope to ride the wave for the next rally to $0.40. cheers for all vested. " ) |
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grandmaster89
Veteran |
10-Apr-2010 23:24
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One deals with tankers and the other deals with dry bulk. Quite difficult to compare though I believe tanker rates weren't as badly hit as compared to dry bulk freight rates so it is strange to see BLT making losses. BLT is very large company. If it can repeat its 2008 performance in 2011, the share price will increase 2-3 times. 4 things to take note of - a) BLT has yet to release their FY 09 results. They have been extending it over the past few weeks with SGX approval. b) BLT gearing is very high.They have high capital commitments (newbuilds and chartered-in vessels) as well. c) Rising crude oil prices should positively impact tanker rates. d) Indonesian cabotage rule should positively impact it. I am exposed to BLT through First Ship Lease Trust which charters a few tankers to it.
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sureesh40
Senior |
10-Apr-2010 19:35
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Hi grandmaster89. In your opinion which is a better buy. Mercator or berlian laju. The indonesian chemical and oil tanker company. |
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grandmaster89
Veteran |
05-Apr-2010 15:19
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MLS is a growing company with a very young fleet so its gearing will be a lot higher than its peers like Courage Marine with an ancient fleet. I believe it detailed its debt payment plans in its presentations. I don't see it as a problem since the bulk of the debt aren't due within the next 2 years. Their strong operating cash flow and support from its parent company should see it through. 1) Mercator Lines is a dry bulk carrier. If the BDI continues to improve, freight rates will rise and so too will its income. 30% of its revenue is tied to spot charter which is determined solely by the BDI. Some of its long term charters will expire this year so any new contract will be determined by the current BDI levels. 2) Mercator Lines will remain profitable till 2012. The bulk of its revenue is concentrated in its Vale contract (1 VLOC), Tata Power contract (3-4 vessels), Cosco (1 post-panamax) and recently its newly acquired panamax vessel. This 4 contracts will ensure that Mercator will continue to benefit from high margin contracts. This will offset any low rates which the rest of fleet might be tied to.
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alvios
Member |
05-Apr-2010 14:50
Yells: "Have A Nice Day !" |
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Hi gm89, looking at this progress for the company, the debt ratio is higher now. 1) If shipping sector really improve a lot, do u think this will move this company up a higher ladder? 2) If shipping sector does not improve, will it be able to tide over these few years? Maybe can share some take on this counter. Im vested in, finally turn green in portfolio. Looking at the progress, this may be anytime a $0.40 counter?
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grandmaster89
Veteran |
01-Apr-2010 11:20
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Cannot compare NOL with Mercator since they are both in different industries. | ||||
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pharoah88
Supreme |
01-Apr-2010 09:45
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what is your TP fOr this? noted that vOlume is very lOw ?
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trueview
Senior |
01-Apr-2010 09:41
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when NOL at $1.65.tis counter at $0.28.now NOL $2.08.it edge up to $0.295.volme going up now.. | ||||
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tanh2l
Veteran |
03-Mar-2010 14:36
Yells: "Outcome is the proof to all brilliant processes." |
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still a long wait, but definitely its good news and prospect. not sure when it will go bck to its cyclical .4xx level
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grandmaster89
Veteran |
03-Mar-2010 14:27
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ACQUISITION OF A GEARLESS PANAMAX VESSEL The Board of Directors (the “Board”) of Mercator Lines (Singapore) Limited (the “Company”) wishes to announce that: The Company has entered into a Memorandum of Agreement (the “MOA”) for the purchase of a young and modern gearless Panamax dry bulk carrier for approximately US$ 38 million (the “Proposed Acquisition”). The vessel is less than 3 years old, built in 2007 by Hudong Zhonghua Ship Building Group, Shanghai, China, and has a capacity of about 74,483 dwt. The vessel is due to be delivered in April / May 2010, and will expand the Company`s owned fleet to 12 vessels with an aggregate capacity of 1.1 million dwt. This acquisition is proposed to be financed through a mix of internal accruals and debt. The vessel comes with an attached charter with a reputed company at a daily charter hire of USD 22,250 per day for 35-37 months. This contract would bring in revenues of about USD 24 million over the next three years. This Proposed Acquisition is expected to have positive impact on the net tangible assets per share, earnings per share and operating results of the Company for the financial year ending March 31, 2011. The Sellers are unrelated to the Directors and controlling shareholder of the Company. None of the Directors and controlling shareholders of the Company has any interest, direct or indirect, in this acquisition. The acquisition is in the ordinary course of the Company's business. For and on behalf of Mercator Lines (Singapore) Limited March 2, 2010 Vessels tend to last for 30 years. This vessel is only three years old so it can provide another 27 years of service. The depreciation will be around US$1.5 million annually. For the next 3 years, it is being contracted at US$8.1 million annual charter. Since its net margins stands at 21% in Q3, I believe it can easily generate at least US$2 million net profit annually. I suppose Mercator now has 4 high margin contracts to see it through for the next 3 years - Vale (1 VLOC), Tata (4 Ships), Cosco (1 Post-Panamax) and now this (1 Panamax). Hopefully the rest of the fleet can break even and not drag down Mercator's performance. Another thing to take note of - The third post-panamax ship will be delivered in 2H 10. |
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