By chance I came across the website of PT Vista Maritim Indonesia ("VMI") group.....
http://vistamaritim.co.id/sample-page/
which is a long-standing sub-contractor of Penguin's wholly-owned Indonesian subsidiary PT. Kim Seah Shipyard Indonesia, which has an established shipyard operations based in Batam.
From the 4th para of the "About Us" page, we know VMI has been engaged to provide manufacturing services to Penguin for 8 units of Flex-40 crew boats and 2 units of the new 26.5m Catamaran Crew Boats currently under development with a target of completion within year 2015. Based on this, it appears Penguin's crew boat production in its Batam yard is still humming. From the points of view of effective cost management and production flexibility, using the service of a third-party owned sub-contractor to provide production workers and undertake a portion of the manufacturing makes good sense.
The 3Q Revenue, PBT, Inventories, cash/deposit and cash flow numbers - when compared with those of 2Q ended 30Jun15 - show that Penguin continues to deliver its crew boats and other vessels and charters out its fleet to customers and book a very healthy overall GPM of 32%, and also managed to sell a few used boats in its charter fleet for a proceeds of $13.6m and realised a gain of $4.06m. Forex loss and the related impact on P&L appears less of a concern in 3Q and for the overall 9-month period. Based on the still quite large 30Sep15 Inventories balance of $59.4m, it appears a few more boat deliveries could well happen in 4Q, which should bring FY15 to another good financial closing. Therefore, my wish is to see a nice dividend declaration in conjunction with the full-year result in Feb16.
The sales of exiting crew boats and the fact that it was sold at a reasonable profit was a pleasant surprise to me. This means that, even in today's depressed market, Penguin's crew boat has its value and usefulness. Also noticed that its cash level has increased again. So, whether it will be used to declare a nice dividends next year, or use to tight through the challenging times ahead, Penguin is in a financial position not many in the O&G sectors has.
Agree that falling inventories is very good news. I do think a 0.5 cents dividend will be declared.
Another good point is that penguin was successful in selling its used vessels. As of now, about 13 crewboats ( 3 Flex 36, 4 Flex 38) are left for sale/charter.
Thirdly, is Penguin's reversal of forex loss into forex gains this quarter.
Cash flow wise its good, but do note there is a fall in trade payable. I will like to see Penguin maintain about 14 mil in term loan debts and not add further while at the same time, using internal resources to generate the funds for expansion of shipbuilding facilites
(02-11-2015, 08:58 PM)Ben Wrote: [ -> ]The sales of exiting crew boats and the fact that it was sold at a reasonable profit was a pleasant surprise to me. This means that, even in today's depressed market, Penguin's crew boat has its value and usefulness. Also noticed that its cash level has increased again. So, whether it will be used to declare a nice dividends next year, or use to tight through the challenging times ahead, Penguin is in a financial position not many in the O&G sectors has.
Finally a vessel sales after a long wait of four (4) quarters, and a size-able one, which is comparable to previous annual disposals.
(vested)
Downside risks :
Debt level increasing
Payment delay from customers
No new orders to replenish order book
Oil price and shipping still ugly
Caveat emptor
sent from my Galaxy Tab S
Has been rather quiet on this front. Just wondering if any forum been optimistic of Penguin's mgmt and have accumulated at 13 cents +
Again hoping for more inventory fall this coming FY and at least 0.5 cents dividend to rewards shareholders for their faith. Hopefully excuse of conserving cash is not used
(18-01-2016, 11:00 AM)CY09 Wrote: [ -> ]Has been rather quiet on this front. Just wondering if any forum been optimistic of Penguin's mgmt and have accumulated at 13 cents +
Again hoping for more inventory fall this coming FY and at least 0.5 cents dividend to rewards shareholders for their faith. Hopefully excuse of conserving cash is not used
Share price drop so much and didnt rebound much of course quiet lah.
think LocalOptimal said he loaded up some at 12cents last year.
probably could hit recent years 10cents lows again or in case of stock market crash 5 cents lows during GFC, given poor sentiment. As I said before when it was 20cent+, always need to consider downside potential in small caps like this no matter how the business looks and even if growing and booming.
Even if management says wanna conserve cash, can't really label it as an excuse as given the very poor business conditions in both OnG and Shipping sectors, it would be prudent to conserve cash and tide through bad times, which could be prolonged
.
if past history serves as a guide management's not usually that generous, hope they prove me wrong.
(18-01-2016, 12:58 PM)BlueKelah Wrote: [ -> ] (18-01-2016, 11:00 AM)CY09 Wrote: [ -> ]Has been rather quiet on this front. Just wondering if any forum been optimistic of Penguin's mgmt and have accumulated at 13 cents +
Again hoping for more inventory fall this coming FY and at least 0.5 cents dividend to rewards shareholders for their faith. Hopefully excuse of conserving cash is not used
Share price drop so much and didnt rebound much of course quiet lah.
think LocalOptimal said he loaded up some at 12cents last year.
probably could hit recent years 10cents lows again or in case of stock market crash 5 cents lows during GFC, given poor sentiment. As I said before when it was 20cent+, always need to consider downside potential in small caps like this no matter how the business looks and even if growing and booming.
Even if management says wanna conserve cash, can't really label it as an excuse as given the very poor business conditions in both OnG and Shipping sectors, it would be prudent to conserve cash and tide through bad times, which could be prolonged
.
if past history serves as a guide management's not usually that generous, hope they prove me wrong.
Yes amidst all the noise in the market now and with the oil crisis, this Penguin seems to have lost alot of the attention it had last year.
I am still vested at around 12 cents but have also taken some profits around 16.5 cents during the mini rebound. Of course I am not so optimistic as before but I believe the fair value for this counter at this climate is around 13-14 cents. If it drops to 10 cents, I may be tempted to dip into my pockets again.