Penguin International

[xlandjy]

The outlook commentary from Nam Cheong announcement today deserves a closer scrutiny:

“Despite the recent volatile oil prices, the shallow water segment continues to be active given that 80% of offshore fields to be developed are in shallow water”

“The global OSV fleet is aging with over 30% of vessels being of traditional build and in operation for over 25 years”

“The demand for small size AHTS vessels remains strong….As one of the leading players in the construction of mid-size PSVs, we are able to benefit from the growing demands in this sector….”

I think all these positives are applicable to Penguin as well, which specialize is small/mid size crew boats and PSV. Not forgetting that Penguin’s boats are versatile. Besides supporting O&G operations, it can also be used as patrol boats, fire-fighting etc… So I guess the impact by the volatile O&G segment to Penguin will be somehow cushion a bit.

Looking at the video of Penguin's latest product, the speed, structure and the capabilities of the boats look impressive. With a speed of 25 to 30 knots, it would attract attention from the law enforcement and military agencies. I also noted that Penguin was able to install night vision capability in its boat.

Law enforcement and military agencies are areas where Penguin has not ventured into. In view of the increase tension in South China Sea and the desire of Phil, Indon and Vietnam to enhance their capabilities, Penguin should explore seriously into this area.