Was rather disappointed that more info is not available regarding the impairment.
Is the impairment reasonable? With the lack of info, and the 3 ships are already built/ being built, 600 mio impairment does not seem a lot since the bulk of payment is usually due at delivery.
What about the rest of drill ships?
I have recently emailed their IR:-
Reply from SMB:
Sembcorp Marine has disclosed that the first 4 drillships are in the range of 50-90% completion. Not started on the last 3 units.
As for the basis of the provision for the Sete projects, Sembcorp Marine said that the provision takes into consideration the full extent of their exposure to the Sete contracts, including the unpaid invoices and construction progress, and amounts to be paid to their suppliers and vendors.
Vested in SCI
The move, will increase the competitiveness of the company, in the LNG sector...
(not vested)
SembMarine increases stake in Norway-based Gravifloat to 56%
SINGAPORE (March 9): Sembcorp Marine has increased its stake in Norway-based Gravifloat AS to 56%, which it intends to fully acquire eventually.
In a statement on Wednesday, SembMarine says it acquired a 44% stake in Gravifloat for US$38 million ($52.6 million), in addition to the 12% stake it already owns.
Under an agreement, the company will increase its stake by an additional 44% to 100% at the same price.
Gravifloat designs and holds parents for a suite of redeployable, modularised solutions based on its unique near-shore floating yet gravity-based LNG terminal solutions.
...
http://www.theedgemarkets.com/sg/article...vifloat-56
(21-04-2016, 01:50 PM)Art or Science Wrote: [ -> ]Sete Brasil to seek creditor protection.
http://www.channelnewsasia.com/mobile/la...18294.html
The market going crazy these few days.
Kuwait oil riggers strike call off should have brought oil price down instead it went up.
Sete Brasil bankruptcy should have depressed Keppel and SCM/SCI respectively but they held up considering the fact this news was up on Bloomberg 6hours before Channel NewAsia.
Other then these 3 companies going Ex-Div soon I really don't see any way it could hold.
talking about ex-div SGX also due soon but right after they announce a decent result last night there was a massive sell down and it ended the day lower by 22 cents lower.
Any buddies here can share some insight?
Personally I believe the Singapore Market is relative small. Many of the counters can be "managed" up or down by sizeable funds. If is huge international fund I am also not surprised they can influence our whole market for some period of time with the help of other people money and leverages. Even insiders can control how they like their results to be reported. I will stay focus and nimble, while going for longer term investment horizon view in stock selection.
(21-04-2016, 09:47 PM)Thaddy0103 Wrote: [ -> ] (21-04-2016, 01:50 PM)Art or Science Wrote: [ -> ]Sete Brasil to seek creditor protection.
http://www.channelnewsasia.com/mobile/la...18294.html
The market going crazy these few days.
Kuwait oil riggers strike call off should have brought oil price down instead it went up.
Sete Brasil bankruptcy should have depressed Keppel and SCM/SCI respectively but they held up considering the fact this news was up on Bloomberg 6hours before Channel NewAsia.
Other then these 3 companies going Ex-Div soon I really don't see any way it could hold.
talking about ex-div SGX also due soon but right after they announce a decent result last night there was a massive sell down and it ended the day lower by 22 cents lower.
Any buddies here can share some insight?
I think you're missing the forest for the trees. Oil prices can be affected by many factors. Speculation is one of them. Furthermore Kuwait production halt affects only how many of total production? For the bankruptcy, we still don't know how much it'll affect Keppel and SCM. How much more provisions will be made? Although Sete Brasil is a big customer, I'm more worried about the future of their O&M business. In the long run, the market is a weighing machine.
(21-04-2016, 09:47 PM)Thaddy0103 Wrote: [ -> ] (21-04-2016, 01:50 PM)Art or Science Wrote: [ -> ]Sete Brasil to seek creditor protection.
http://www.channelnewsasia.com/mobile/la...18294.html
The market going crazy these few days.
Kuwait oil riggers strike call off should have brought oil price down instead it went up.
Sete Brasil bankruptcy should have depressed Keppel and SCM/SCI respectively but they held up considering the fact this news was up on Bloomberg 6hours before Channel NewAsia.
Other then these 3 companies going Ex-Div soon I really don't see any way it could hold.
talking about ex-div SGX also due soon but right after they announce a decent result last night there was a massive sell down and it ended the day lower by 22 cents lower.
Any buddies here can share some insight?
It's funny that when Markets don't turn out the way we expect, we say that Mr Market has gone crazy. On the other hand, when Mr Market bounces around in the direction that we anticipated, we cast it as 'efficient' and 'rational'. I can only say that it is key for any market participant to differentiate between the Signal and the Noise. IMHO, I think the OPMI actually has an advantage in this over the institutional guy.