Atlantic Navigation Holdings

[ngcheeki]

Atlantic Navigation Holding. A relatively good catalyst company with good PE < 10X, low gearing of 18% as well as reasonable price to book of 0.983X. This company went through a RTO (Reverse TakeOver) of a steel company called “FastTube Limited” in July 2012. The company is in the same sector as Jaya Holding of chartering out vessels AHT and AHTS but with a lower PE (à growth stock). In 9MFY2013 the company has a PE of only close to 7X. Unlike Jaya, the operating region is around UAE region. The free float for this company is around 20% mainly because the major share holder Wong Siew Cheong own 66% of the group. The customers of the company are all oil majors in UAE region namely Abu Dhabi Marine Operating Company (ADMA-OPCO), BGP Arabia Co. Ltd, Bunduq Oil Company, Fugro, Global Industries Offshore LLC., J Ray McDermott M.E Inc., Larsen & Toubro Limited, Maersk Oil, MUSC FZE, UTEC Survey, Zakum Development Company(ZADCO), and Wintershall. The following is a short summary on the financial information:

3QFY2013:
Mkt Price $0.320
NAV (US$) $0.260
NAV (S$) $0.326
Price/BV 0.983

Net Cash ($12,783.00)
Net Debt per share (USD$) ($0.05)
Net Debt per Share (S$) ($0.06)
Net Gearing -18.83%


9MFY2013 (USD)
Revenue $34,820.00
Profit $9,622.00
Net Margin 27.63%
EPS (USD) $0.037
PE 6.933

If we extrapolate the full year performance of FY2013, the full year result should be around 5 US cents and if we use the standard market dividend payout ratio of 30%, this company should award shareholder with around 1.5 US cents or around 1.9 cents. Based on last transacted price of 32 cents this work out to be around 6% yield which is not too bad.


Kelvin Scully of NRA has a good coverage on this company and the following are the link for your references.

Vessel acquisitions:

http://www.nracapital.com/Research/KevinBlog/761



3QFY2013 result announcement:

http://www.nracapital.com/Research/KevinBlog/758



2QFY2013 result announcement

http://www.nracapital.com/Research/KevinBlog/738

vested

[minimax]

Hi,

1) how much is free cashflow is Atlantic generating?
2) how is Atlantic's PE, Price-to-Book compared to its listed peers in the OSV industry?
3) what are management's intention with regards to dividend policy, share buybacks?

[ngcheeki]

Hi,

1) how much is free cashflow is Atlantic generating?
2) how is Atlantic's PE, Price-to-Book compared to its listed peers in the OSV industry?
3) what are management's intention with regards to dividend policy, share buybacks?

Hi,

The following is some of the information I gathered, please do your own verification

1)
FY 2011 (USD) FY 2012 (USD) 9MFY2013
Net Operating Cash Flow $12,075.0000 $20,278.0000 ($2,711.0000)
Capex $2,825.0000 $19,700.0000 $3,006.0000
FCF $9,250.0000 $578.0000 ($5,717.0000)


2) The following may provide some ideas of Atlantic Navigation financial ratio compare to its peer.

http://www.google.com/finance?q=SGX%3AJ1...JDMkgWyvgE

3) dividend Policy, the following is what I had found on the FastTube RTO document.

"12.14 Dividend Policy
Shareholders and prospective investors should note that the Fastube Group currently does not
have a formal dividend policy. The Target Group has not declared, approved and paid any
dividend for FY2009, FY2010 and FY2011 and for the period from 1 January 2012 to the Latest
Practicable Date. The Target Group currently does not have a formal dividend policy."

[minimax]

With FCF turning negative, it looks like Atlantic is more likely to embark on a fund raising exercise than be giving out dividends.

[imswedish]

It's moving fast!!! steaming ahead

[imswedish]

higher and higher, anyone vested??

[imswedish]

ah.. agm + egm soon

[imswedish]

shooting for 12m year?

Atlantic Navigation reports 61% increase in net profit

 61.0% surge in net profit to US$3.0 million achieved on back of 9.6%
increase in revenue
 Gross profit jumped 42.9% to US$4.6 million with gross profit margin
improving from 31.5% to 41.0%
 Fleet expansion includes one new vessel added in 1Q2014 and two
new vessels under construction, one of which is expected to join the
fleet in 2Q2014.

[sykn]

Hi all, I have just chanced upon this company and have started to look at its business in some detail. It appears that FY13 was a turnaround after its RTO in FY12, and 1Q14 results seems on track - pretty decent ROE in FY13 for the first time. But I must confess that I know very little about their marine logistic services, and ship repair, fabrication and other marine services to the oil and gas as well as shipping industries in the Middle East and India. Would you still recommend this company to someone who is not vested? Thanks in advance.

[imswedish]

something brewing recently?