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Kim Heng Offshore & Marine
04-08-2014, 09:06 AM. (This post was last modified: 04-08-2014, 09:10 AM by CityFarmer.)
Post: #1
Kim Heng Offshore & Marine
Profit warning.

http://infopub.sgx.com/FileOpen/KimHeng-...eID=307953

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07-11-2014, 07:21 AM.
Post: #2
RE: Kim Heng Offshore & Marine
http://www.businesstimes.com.sg/companie...lummets-62

Kim Heng's Q3 profit plummets 62%
Fall in revenue and gross profit margin; group expects final quarter to fare better than Q3

By
Anita Gabrielanitag@sph.com.sg@AnitaGabrielBT
7 Nov5:50 AM
Singapore

LOWER revenue and poorer gross margin combined to drag down Kim Heng Offshore & Marine Holdings' third-quarter earnings.

The company, which was listed on Catalist in January this year, on Thursday posted a sharp 62 per cent fall in net profit to S$1.15 million for the

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12-06-2017, 07:01 PM.
Post: #3
RE: Kim Heng Offshore & Marine
Kim Heng bought some assets of Swiber at fire sale prices:

http://infopub.sgx.com/FileOpen/Kim%20He...eID=457479

With this transaction Kim Heng's cash position should be reduced to about $10m, and its debt raised to about $25m.

Is Kim Heng smart, or will this accelerate its cash burn rate?

With lower shale production costs, will demand for offshore and marine services recover to previous levels?

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12-06-2017, 07:55 PM.
Post: #4
RE: Kim Heng Offshore & Marine
If we accept contrarian notions, buying those assets now would make sense.
Not vested.
=========== Signature ===========
You can count on the greed of man for the next recession to happen.

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06-01-2020, 09:19 PM. (This post was last modified: 06-01-2020, 10:54 PM by dreamybear.)
Post: #5
RE: Kim Heng Offshore & Marine
Selling property for 18.5m vs mkt value 22m(book value 25m) due to only selected buyers allowed.

I wonder whether ppty appraisers take these conditions into considerations.

Still holding on to my belief(based on previous experience) that there may be a need to apply some discount to the value in "ppty/plant/equipment" in certain situations.

---------------------------------------
Kim Heng Offshore & Marine to incur impairment loss of $6.5 mil in proposed sale of Penjuru Road property
Stanislaus Jude Chan 3/01/2020, 5:47pm

.....Based on a valuation by Collier International Consultancy and Valuation (Singapore) as at end-December 2019, the property has a market value of $22.0 million.

However, Kim Heng says in a filing to SGX that the sale price was the best price offered for the property.The group says this is because the owner of the building, Jurong Town Corporation (JTC), only allowed the property to be sold to a company engaged in a business which involved the use of the waterfront, thus narrowing the pool of potential buyers......

https://www.theedgesingapore.com/capital...le-penjuru

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07-01-2020, 11:35 AM. (This post was last modified: 07-01-2020, 11:36 AM by Ben.)
Post: #6
RE: Kim Heng Offshore & Marine
I was thinking Kim Heng would raise money thru placement or right issues, but it chose to sell assets instead.

During the downturn, the company has taken the opportunity to buy distress assets, mainly Tug boats and supply vessels, at hugely discounted price. These vessels are now gainfully chartered out, and I suppose at reasonable rates. With improving offshore chartering rates, it is likely that the market value for these vessels is higher than its carrying value in the balance sheet.

So by selling the property, instead of selling some vessels acquired last few years, and possibly at a profit, I reckon that the company feels that the vessels can bring in more economic benefits to the company.

Unlike some O&G companies that went belly up during the last few years due to the oil crisis, Kim Heng has managed to survive. Of course, its cash level is also depleting. So far, it has tap on bank credit, and now selling property to meet its capital needs, instead of issuing shares thru placement and/or right issues. What’s the logic? Probable has to attend the EGM to find out more.

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