RickmersMaritime   

Rickers

yes Vested here. Steady yield but forget about capital appreciation. But I guess the effects of the other shipping trust.. FSL something .. still lingering in peoples mind. 

chyn_no      ( Date: 05-May-2013 22:08) Posted: Just wondering why the price never recover ever since ipo? Div has been stable . And also quite attractive .. Anyone vested ?

 

Just wondering why the price never recover ever since ipo? Div has been stable . And also quite attractive .. Anyone vested ?

 

Rickmers Maritime: HOLD; S$0.385; Bloomberg Code: RMT SP
Focus on healthier balance sheet
Price Target : S$ 0.36

Maintained DPU payout at 0.57UScts as expected, though distributable
 cash improved 45% q-o-q to US$18.4m

               Recorded US$54.6m net loss owing to recognition of US$64m orderbook
 cancellation penalty

               Continued to reduce borrowings to improve balance sheet, focus not on
 acquisitions or growth yet

               Maintain HOLD, TP unchanged at S$0.36

Comment on Results
One-off item led to net loss in 3Q. RMT recorded an accounting loss of US
$54.6m in 3Q10, largely owing to the US$64m one-off penalty payment (to
parent Group company Polaris) expensed off during the quarter. US$15m of
the penalty was paid in cash while the rest will be in the form of a
convertible loan. Stripping this exceptional item off, results were largely
in line with expectations as operations continued to be stable. On a q-o-q
basis, distributable cash flow improved 45% to US$18.4m owing to the
absence of loan restructuring fees of ~US$5m incurred in 2Q10. On a y-o-y
basis, however, cash earnings were about 7% lower, given the higher
interest costs under the waiver period.

DPU maintained at 0.57UScts for the quarter.  This is unchanged on a
sequential basis and within the 0.6UScts cap imposed on DPU by lenders as
part of the loan restructuring agreement.

Outlook & Recommendation
Cash reserves depleted. As we had highlighted in our last report, RMT saw
significant cash outflow of US$86m in debt repayments in 3Q10 – including a
US$59m upfront prepayment on long-term loans, about US$12m scheduled
amortisation of the US$130m top-up facility, and US$15m excess voluntary
repayments. After the additional US$15m cash penalty paid to Polaris for
the cancellation of commitments, gross cash reserves were down to US$46m
from US$132m at end-2Q10. Management will likely continue to use excess
cash to de-lever the balance sheet further and we do not expect a return to
acquisition-driven growth or higher DPUs in the near term. Maintain HOLD.
Our TP of S$0.36 is based on 9% FY10-11 target yield.

Source: DBS Secs

Make Love More, Don't Make More Enemies 

 

Rickmers Maritime - Gets early delivery of vessel, increases forecast revenue by over US$3.2 mln

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Tan Jin San, 05 Dec 2007

Rickmers Maritime received early delivery of a vessel that led to the manager of the trust increasing its forecast revenue by over US$3.2 mln.

The 4,250 TEU container ship was scheduled to deliver from Dalian Shipyard at the end of Jan 2008. It will be deployed in the trade route between the Far East and the Black Sea.

Rickmers? stock closed down at S$1.28 today. Reuters Estimates has a ?Buy? call on it with a target price of S$2.025.

 

A good bargain.. BB got to get in to soar... This is a good one.

 

A positive financial report just came out. Good! Not long ago, i did read about this counter the TP is around 1.83.. Hopefully my memory didnt fail me. Worth a Plus look in this. Vested.

 

Have you considered similar counters, in terms of dividends and ROCE?  

 

IPO Price was $1.57. NTA now is $1.54. I think this counter is safe and sound with the following risk:

1) What impact to the bottom line for Rickers at current oil price. Can the price increase be transferred to their customers?

2) What impact to the bottom line with the depreciation in the US Dollar? How much of the revenue is generated in US Dollar? How well does Rickers manage their US Dollar exposure?

What do you think?