Simple Financial Ratio (Estimated by Jack Phang)
|No of Outstanding Shares:||1,416,701|
|Market Cap (S$000)||672,933|
|Estimated Annualized EPS (US$)||0.0371|
|Estimated Annualized EPS (S$)||0.0472|
|Estimated Annualized PE Ratio:||10.07|
|Estimated DPS (S$)||0.01|
|Estimated Dividend Yield||2.11%|
Company reported net profit for quarterly report ended 31 Dec 2013 of US$13M on the back of revenue of US$84M, a significant improvement compared to corresponding period last year. This is mainly due to the surge of contribution from both subsea and drilling services. Net profit margin stands at a healthy 16% due to other income such as US$7M increase in income from associates as well as gross profit margin improvement to around 20% due to product mix changes.
The company is quite confident in next 2 - 3 years as there is a US$750M back log income apart from the associate's business. Below is the breakdown of the order book achieved by company so far:
The utilization rate of the tender rigs is now at more than 85%, which indicates a market with strong demand in subsea services. With company's order of 2 tender rigs targeted to be delivered by 2016, the revenue from tender rigs would be doubled from 2016 onward.
Below is a snapshot of balance sheet of company ended 31 December 2013:
|Assets. Source: Company, Jack Phang Compilation|
|Liabilities & Equity. Source: Company, Jack Phang Compilation|
So far the company managed to have a healthy balance sheet with welly managed debt level (about 20% total debt to asset ratio). Note that the company raised the fund from shares right issues last year to support the growing business & working capital needs as it has also placed an order on January 2014 for two more drilling rigs and 1 multipurpose subsea dive support & construction vessel. Nonetheless,I believe that the company may not issue the rights this year unless there is any further business opportunities the company must seize.
Company managed to report a net cash flow from operating of US$18M, about US$3M improvement from corresponding period previous year. I believe that the company would be able to maintain free cash flow status until year 2016 due to improved net cash flow from operating.
|Cash Flow Statement. Source: Company, Jack Phang Compilation|