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Sembmarine

looking to buy sembmarine. Seems like oil future has gotten up...tml might up further. Any advise?

 

SembMarine: Upstream reports that Songa Offshore has secured a contract for the ultra-deepwater semi-sub rig Songa Eclipse newbuild that is set to roll out of SMM's Jurong Shipyard in Aug. Highlights the US$268m 1 yr contract for the rig is believed to have laid the groundwork for potential fleet expansion at Songa.

Upstream understands that Songa had enquired about both the mid-water Moss Maritime CS40 design semi-sub and CS50 deep-water version. SMM is currently building 2 Moss Maritime CS50 ultra-deepwater semi-sub for SeaDrill. While JPM recently highlighted Jurong Shipyard is still in running for Songa's 2 semi-sub orders with a potential order size of US$2-2.5b.

SMM’s YTD order wins of $2.2b pales in comparison to Keppel’s $7.4b, but the former could soon play catch up if its order momentum picks up. Recall, SMM recently secured a $600m contract from PTTEP for a processing platform.

The majority of the Street has Buy ratings on SMM, with recent TP btwn $6.30-6.80.

 

  I think 50% wilmar and 50% sembmar sounds reasonable... ... OR

Bot wilmar and Sell sembmar and vice versa

james87      ( Date: 23-Jul-2011 16:55) Posted: Now I'm puzzled whether to punt in wilmar or SM.....any advise from sifus

 

Now I'm puzzled whether to punt in wilmar or SM.....any advise from sifus

 

On the Commodities Front

Precious metals moved higher on the flight to safety aided by lingering questions about how the situation in Europe will play out, as well as concerns about how the debt negotiations are going in the US.

Gold traded to highs, at 1607.70, early in the session, but spent the remainder of the day pulling back slowly from those highs.

Silver had a similar pattern of trade, notching highs at 40.30 in mid-morning trade before pulling back throughout the remainder of the day.

August Gold finished higher by 0.9% to 1601.30 oz, while Sept Silver gained 2.9% to finish at 40.08 oz.

Sept Crude Oil settled higher by 0.8% to 9.87. Crude Oil futures spent the session rallying off their lows, at 98.43, and eventually traded back above the 100 mark where they put in highs at 100.19 bbl.

On the Week: Crude Oil rallied for 2.7%, and posted gains for the 4th week in a row. Aug Nat Gas finished near flat at 4.39 per MMBtu.

 

  $5.45 is the two edged sword, resistance and resistance turn support for the call to $5.58... ...

The key to watch is $5.43.. ...

 

 

QUESTIONS

Keppel proposed a dividend of 17 cents

How is sembmar this time round.

 

Definitely a NO No no, Resons, It not abt the forex case, suicide bomber type.

Accountancy Audit Firm ? ?? I'm not so sure, But one sure thing is that ernst and young is just a NEW BIRD to audit sembmar financial statement,

I still prefer KOREAN AUDITOR, WHY ?? ??? BECOS of SAMSUNG , korea state owned company

james87      ( Date: 23-Jul-2011 11:51) Posted: I suppose this wont affect the stock price right...since have been quite some time liao...krisluke sifu

 

I suppose this wont affect the stock price right...since have been quite some time liao...krisluke sifu

 

 

Singapore's Sembcorp Marine said today that its wholly-owned subsidiary Jurong Shipyard (JSPL) has filed a Notice of Arbitration against its former auditor, Ernst & Young in respect of disputed unauthorized foreign exchange transactions.

This marks the latest step in a saga that goes back to October 2007, when Sembcorp Marine announced that it had fired its 

Group Finance Director, saying in a stock exchange announcement that he had " entered into various unauthorized foreign exchange transactions."   In that announcement, it put the estimated unrealized loss to JSPL arising from the foreign exchange transactions, if valid, in the region of US$165 million, not including another US$83 million that JSPL paid to one of the banks before the transactions were discovered.

Today, Sembcorp Marine said that " although a full and final amicable settlement with all the banks involved in the disputed foreign exchange transactions had been achieved in 2010, JSPL believes that it has a valid claim against Ernst & Young."

 

So, Any one here not so sure about the cause of such dispute 

Let me show you the " history" for those in ?

 

krisluke      ( Date: 23-Jul-2011 11:24) Posted:   Dispute with  former auditor Ernst & Young ? ?? The NUMBER ONE DOUBT is GOT $$$$ TO                                                                                                                                                 COLLECT OR NOT

 

  Dyna-Mac: 4Q Rev at $44.8m -3.2%yoy +13.7%qoq. Net profit 7.6m +28.4%yoy +5.3%qoq. Gross profit margin fell qoq from 39.7% to 31.1%. Full yr rev at $167.8m down 23.2% yoy, net profit at $24.8m -2.5% yoy, attributed to moratorium imposed due to oil spill disaster in Gulf of Mexico in Apr last yr.

Full yr margins were boosted by a write-back of impairment of trade receivables and contingent costs of prev projects ($10.3m) offset by slightly higher admin costs due to IPO. A 0.02c div declared for the year. Co has current order book of $117m with $18m from KepCorp and is optimistic on higher oil prices with increased drilling activities.

At FY2011 EPS of 3.24c, co is trading at 16.7x trailing P/E. Counter is covered by one house, AmFraser, a Sell with TP$0.42

========================================================================================================

  Keppel Corp: 2Q11 results ahead of expectations.

Net profit of $385m, +9% yoy, +24% qoq, and came in 12% higher than consensus estimates.
O& M profits at $609m (+7% yoy, +10% qoq) and stronger infrastructure contribution at $81m (3-fold increase yoy, +12% qoq), helped to negate the decline in property profit of $225m (-34% yoy, -55% qoq).

The weakness in property was due to a change in accounting rules, where revenue recognition for its overseas and local deferred payment scheme projects are now delayed till “completion of construction” rather than on “percentage of completion”. Keppel also restated its 1Q11 property earnings downward by ~$38m, although this sum will now be recognized in subsequent yrs, ie. on completion.

The Street remains bullish on the O& M industry, supported by the level of current and planned E& P, and replacement of ageing offshore rig fleet and existing eqpt infrastructure. Expect 2011 to be a banner yr of O& M orders for Keppel, as its YTD wins of $7.4b have already reached the previous peak set in 2007.
Co. declares better-than-expected interim div of 17cts/ sh, up from last yr’s split adjusted div of 14.5cts.

Deutsche maintains at Buy, raises TP to $13.80 from $13.60.
Daiwa, HSBC, CIMB maintain Outperform, with TP btwn $13.45 – 14.10.

 

Let's us take a look at their closest business rivals in SINGAPORE water front... ....

 

  Dispute with  former auditor Ernst & Young ? ??

The NUMBER ONE DOUBT is GOT $$$$ TO

                                                                                                                                                COLLECT OR NOT

 

PREVIEW: Singapore Rig Builders 2Q Net Likely Steady Outlook Strong

July 20th 2011     ·    0 Comments

TAKING THE PULSE: Singapore rig builders are likely to report higher second-quarter net profits amid a steady rise in orders as drillers replace old fleets and step up exploration and production activities to take advantage of high global crude oil prices.

Analysts expect the world’s two largest rig builders by market share–Keppel Corp. (BN4.SG) and Sembcorp Industries Ltd. (U96.SG)–to continue to receive strong orders for rigs in 2011, which will boost their profits after the next two to three years.

“As the offshore and marine earnings are driven by orders received two to three years ago, actual earnings are likely to be a non-event. We expect investors’ focus to centre on forward order momentum, progress of inroads into  drillship  operations, available slots for 2013 deliveries (and) current status of outstanding options,” BNP Paribas said in a note on Keppel’s earnings.

However, analysts said that a sharp and sustained fall in global crude oil prices if the global economy slows significantly may hurt drillers’ exploration and production plans. That may cut new orders or discourage firms from exercising options for rigs.

COMPANIES TO WATCH

Keppel Corp. (BN4.SG) – July 21

Market Expectations: Five analysts polled by Dow Jones expect second-quarter net profit to rise 1.0% to S$350.8 million from S$347.3 million a year earlier. Revenue is predicted to rise 6.3% to S$2.55 billion.

Key Issues: Keppel is likely to benefit from orders from Brazil’s Petrobras, which is likely to award 21 new deepwater rigs this year after the process was delayed. Analysts expect the rig builder to secure a record level of new contracts in 2011. The company’s orders in hand grew by more than S$7.4 billion in the first six months of the year, matching its annual record for new orders, which was set in 2007 when new orders totaled S$7.4 billion.

However, the company’s net profit margin is likely to dip because of higher raw material costs and lower prices quoted for new contracts.

Sembcorp Industries Ltd. (U96.SG) – Aug 4

Market Expectations: Four analysts polled by Dow Jones expect second quarter net profit to rise 13.3% to S$182.7 million from S$161.3 million. Revenue is expected to rise 16% to S$2.49 billion.

Key Issues: Analysts expect more orders for the marine and offshore unit of Sembcorp Industries, though it has lagged its bigger rival Keppel so far this year. However, they say cost overruns could hurt margins and earnings. The company is also exposed to foreign exchange risk as its revenue is in U.S. dollars, a currency that has fallen 5.4% since the beginning of the year after shedding 8.6% in 2010 against the Singapore dollar, the reporting currency.

Sembcorp may also see weaker order flows if oil prices fall further, as lower prices usually result in lower exploration budgets.

In the utilities business, continued global economic uncertainty and any slowdown in China can hurt Sembcorp Industries, analysts say.

-By Gaurav Raghuvanshi, Dow Jones Newswires

 

SINGAPORE, Jul 22 (Reuters) - Sembcorp Marine said on Friday it wholly-owned subsidiary Jurong Shipyard has filed a notice of arbitration against its former auditor Ernst & Young.

The notice stems from a case of disputed foreign exchange transactions, which the company had settled with all the banks late last year.

" Although a full and final amicable settlement with all the banks involved in the disputed foreign exchange transactions had been achieved in 2010, JSPL (Jurong Shipyard) believes that it has a valid claim against Ernst & Young," Sembcorp Marine said in a statement. It did not provide more details on the arbitration.

 

* Q2 net profit S$384.9 mln vs S$334 mln average forecast

* Net orderbooks at S$9.1 bln as at end-June

* Sees good prospects for deepwater rigs

By Harry Suhartono SINGAPORE, Jul 21 (Reuters) - Singapore's Keppel Corp , the world's largest oil rig builder, posted a better-than-expected 9.3 percent rise in second-quarter net profit as margins from its offshore and marine business came in better than expected. Keppel and rival Sembcorp Marine , the world's number two rig builder, have enjoyed a strong rebound in rig-building orders as energy firms step up exploration amid high oil prices.

" The premium in day rates for high-spec jackups has continued to drive its order momentum. Our offshore and marine business secured S$7.2 billion ($5.9 billion) of new orders in the first half of the year, a record level for a half year," Chief Executive Officer Choo Chiau Beng told a media briefing. Keppel's net orderbook as at end-June was S$9.1 billion with deliveries stretching into 2014. The strong new orders come after a massive slowdown in the past two years as a result of the global economic crisis.

" The (offshore and marine) division sees good prospects for its deepwater solutions with the projected increase in deepwater capital expenditure over the next few years," Keppel said in a statement. The firm, around 20 percent owned by Singapore state investor Temasek [TEM.UL], recorded net profit of S$384.9 million in the quarter ended June, up from a restated S$352.3 million a year earlier.

The profit beat the average forecast of S$334 million by analysts polled by Reuters. Keppel's earnings from property fell 38 percent to S$59 million during the quarter, hurt in part by changes in accounting rules that led property arm Keppel Land to report a 65 percent decline in quarterly profit.

Keppel shares have risen by more than 5 percent since the start of the year, outperforming rival Sembcorp Marine which has lost about 0.4 percent. The broader Singapore market < .FTSTI> has fallen about 1.6 percent this year. JPMorgan is one of the firms that is bullish on Keppel, noting the firm's customers had options for nearly $3 billion worth of rigs that had not yet been exercised.

($1 = 1.214 Singapore Dollars)

 

Thursday, July 21, 2011