ASL Marine Holdings says its wholly-owned subsidiary, ASL Shipyard Pte Ltd, has secured new shipbuilding contracts worth a total of $55 million for 30 vessels, comprising two Azimuth Stern Drive Tugs, one pipe-lay barge and 27 cargo barges.
The two of Azimuth Stern Drive Tugs are scheduled for completion by the first quarter of 2012. The barges are scheduled for progressive deliveries by the first quarter of 2011.
Otto Marine says subsidiary, Singapore-based Reflect Geophysical, has entered into a contract valued at least US$2.7 million ($3.7 million) in New Zealand with Octanex NZ to carry put a 270 sq km 3D seismic data acquisition in the Taranaki Basin area of New Zealand.
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Courage Marine Group, the dry bulk shipper of raw materials, recorded a net profit of US$5.2 million ($7.1 million) for the three months ended 30 June 2010 (2Q2010) compared to a net loss of US$0.9 million in 2Q2009.
Group turnover surged 168% in 2Q2010 to US$16.3 million from US$6.1 million in 1Q2009. This was due to the steady recovery in dry bulk rates and better fleet utiliation, which was around 90% in 2Q2010 given the higher demand from the commodity trading, especially in Greater China Region compared to the fleet utiliation of around 70% in 2Q2009.
Mainboard-listed Marco Polo Marine, the integrated marine logistic group, says the group recorded a 39% increase in revenue from $15.8 million in 3Q FY2009 to $22.0 million in 3Q FY2010 due to improved performance from both ship chartering and shipyard operations.
The increase also contributed to 9M FY2010 revenue growth of 24% to $49.5 million. For the 9-month period, ship chartering revenue rose 46% to $26.5 million as the group expanded its operating fleet size from 46 to 60 (excluding the 24 vessels co-owned with Glencore International under MPST Marine Pte Ltd). Revenue from shipyard operations gained 6% to $23 million mainly due to higher ship repair activities following the full operations of the two dry docks from the beginning of FY2010.
Phillip Securities downgrades Otto Marine (G4F.SG) to Hold from Buy, cuts target price to $0.40 from $0.58 based on 1.40x P/B vs 1.95x previously, according to Dow Jones.
Phillip says company’s chartering, specialised offshore services businesses expected to continue growing for next 3 years, but chartering rates may decrease as new vessels enter market.
UOB KayHian has started Marco Polo Marine (5LY.SG) at Buy with $0.53 target price, implying 8.4x FY10 P/E, 6.9X FY11 P/E, says Dow Jones.
UOB KayHian expects ship chartering business to be key earnings driver for provider of tugboats and ship building, repair services from FY10-FY12. Tips chartering revenue to grow to $82.5 million in FY12 from $26.9 million in FY09 as company expands fleet to 88 units from 16 currently.
Expects ship repair business to contribute another $20–$25 million to group revenue if company’s second newly completed drydock fully utilised.
Shares +3.5% at $0.445.
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DBS Vickers Securities in an Aug 4 research report says: “Despite lower than expected sales, net earnings were in line, boosted by strong EBIT margins which expanded by 7.3ppt y-o-y to 18.4% in 2Q10.
New discoveries from the deep
A remarkable area of marine diversity has been discovered in the cold depths of the ocean in North Sulawesi, Indonesia. A joint American and Indonesian expedition is using a remotely operated vehicle, called Little Hercules, at depths of 3,700m (2.3 miles) to explore an area in the region of the Sangihe and Talaud islands. Tim Shank, the expedition’s lead scientist from the Woods Hole Oceanographic Institution, says the diversity of large animas found rivals anything in similar habitats anywhere in the world. The team have spotted 30-40 new species just in the past week of diving. Little Hercules is cruising over hydrothermal springs, abyssal muds and the rocky tops of seamounts—a kind of underwater mountain. Distinctive corals live down here, and with them a specialised fauna. Two chirostylid crabs (pictured above) spend their adult lives only in one particular antipatharian black coral. Sea stars, crabs, shrimp and worms live in the limbs of these corals as birds and insects do in the branches of trees in a rainforest. The team are also gathering intriguing evidence for the existence of a deep ocean “Wallace Line”. This is an area named after Alfred Wallace, who in the 19th century noted that the land-based fauna on either side of this line was distinctly different. More information can be found here.
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Otto Marine, the builder and charterer of offshore support vessels, says it posted a 40.4% fall in net profit to $16.7 million for the second quarter ending June 30 2010 (2QFY2010) versus $28 million for 2QFY2009. Revenue fell 26% to $129.7 million compared to $175.3 million.
The decrease in 2Q revenue was primarily due to the percentage-of-completion recognition achieved in the shipbuilding business and reduced utilisation rates of the group’s chartering of tugs and barges. This decrease was partially offset by the increase in geophysical business procured by the group’s 81.6% owned company, Reflect Geophysical.
Daiwa lifts Sembcorp Marine (S51.SG) target price to $4.10 from $3.55 to reflect higher free cash flow on back of improving profit margins, says Dow Jones.
Daiwa notes 2Q10 net profit +27.6% on-year at $176.1 million as margins almost doubled to 21.6% from 12.9%. Still, keeps Underperform call given limited upside from current price levels.
DMG & Partners Securities in an Aug 3 research report says: :Marco Polo Marine’s (MPM) wholly owned subsidiary, PT Marcopolo Shipyard, has entered into four vessel building contracts with an Indonesian entity to build four units of barges to be leased to the 50/50 JV between MPM/Glencore – Alpine Marine (AML) at an aggregate contract value of $8.9 million.
The following companies may have unusual price changes in Singapore trading today. Share prices are from the previous close. Singapore’s Straits Times Index fell 0.3% to 3,014.77.
SembCorp Marine (SMM SP): The world’s second-biggest builder of oil rigs said second-quarter profit rose 28% to $176.1 million from a year earlier. SembCorp Marine slipped 1% to $4.04.
Net income rose to $176.1 million, or 8.48 cents a share, compared with $138.1 million, or 6.7 cents, a year earlier, the Singapore-based company said today in a statement. Sales were $1.1 billion.
Sembcorp Marine says it achieved a 28% increase in net profit to $176.1 million from $138.1 million in 2Q 2009. Group turnover at $1,097.9 million was 27% lower as compared with $1,497.6 million for the corresponding period in 2009.
Group operating profit at $202.3 million was 21% higher than the same quarter in the previous year. Group pre-tax profit increased 26% to $224.8 million from $178.9 million in 2Q 2009.
Catalist-listed Viking Offshore and Marine announced a net profit after tax of $5.9 million for the six months ended 30 June 2010 (1H2010) on first-time contributions of $4.1 million from Viking Airtech which it acquired in January.
The group’s net profit in 1H included $2.6 million gain (net of fair value losses on other equity) from disposal of shares in two listed companies – Tung Lok Restaurants (2000) and Old Chang Kee – in line with its strategy to divest non-core portfolio investments to focus on earnings-accretive O&M businesses.
DnB Nor has downgraded Otto Marine (G4F.SG) to Sell from Hold as stock has breached its $0.35 target price, says Dow Jones.
DnB Nor says shipbuilder, supplier of offshore support vessels continues to face weak order flows, with no new building contracts secured so far this year.
“Newbuild orders for deepwater offshore support vessels are likely to remain slow with current weak sentiments and uncertainties surrounding the demand for OSVs in the US Gulf,” says DnB Nor.
OCBC Investment Research in a July 20 research report says: “Viking Offshore & Marine (Viking) announced that it has entered into sale and purchase agreements to acquire 100% of Promoter Hydraulics Distributor Pte Ltd (PHPL) for a total consideration of $22.25 million and 55% of Marine Accomm Pte Ltd (MAPL) for $7.5 million.
Ezion Holdings says wholly-owned subsidiary, Teras Australia Pty Ltd has agreed to lease of a plot of land in Australia for the development of a second marine supply base to support the offshore oil and gas industry in the vicinity.
The deal relates to the lease of an initial 36ha seafront land situated in the Northern Territory of Australia, with rental fees that are payable monthly, an initial lease period of 10 years with the option to extend for up to 50 years.
