Go see Baltic Dry Index & Maybulk results. All have been hit hard by commodities slump.
And Oil & Gas Companies are hit even harder!
This quarter actually show an operating loss if not for some "maneuver" by clever accounting.
Coastal is a cyclical stock. Now in prolonged down cycle. Just get out as fast as you can.
Switch to the Most Defensive Recession Proof Laggards Now!
calvintanengAnother red flag is Debt has Ballooned to near half billion ringgit suddenly! Just be very careful now.
chong0611and another weird thing is company's "property, plant and equipment" increase from 198mil (Q215) to 840M (Q315). What they have bought?
tkk1127“The year thus far saw Coastal Contracts charting a new milestone with the successful delivery of Coastal Driller 4001, our first jack-up rig, to a leading international O&G player.
The Group recorded 17.9% lower net profit in 9M15 of RM124.5 million compared to RM151.7 million last year, primarily due to slower deliveries of new OSVs. This was despite 9M15 revenue doubling to RM1.4 billion from RM699.5 million previously, mainly attributed to proceeds from the sale of Coastal Driller 4001.
Group 3Q15 net profit dipped 56.3% to RM23.7 million, from RM54.3 million a year ago, due to inventory written-down. 3Q15 revenue increased 296.4% to RM921.2 million compared to RM232.4 million previously, from the sale of Coastal Driller 4001.
tkk1127Substantial orderbook of RM2.9 billion allows Group to effectively weather ongoing O&G market downturn.
Coastal Contracts’ order book stood at RM2.9 billion as at 30 September 2015. Of the total orderbook, OSV and other vessels, amounting to RM1.3 billion, will be due for delivery until 2017.
The Group’s O&G division made up the remaining order of RM1.6 billion, comprising the fabrication and long term charter of a Jack Up Gas Compression Service Unit (JUGCSU) to Mexico’s national oil company Petróleos Mexicanos.
The JUGCSU, whose fabrication been completed earlier, is en route to Mexican waters and remains on track for charter commencement in the first half of 2016.
ahjibkor"calvintaneng: Another red flag is Debt has Ballooned to near half billion ringgit suddenly! Just be very careful now."
"chong0611: and another weird thing is company's "property, plant and equipment" increase from 198mil (Q215) to 840M (Q315). What they have bought?"
hey guys, is the jump in PPE and total borrowings of about RM840 million coming from its drilling rig 4001? or the JUGCSU unit? ... still trying to figure the accounting treatment out...
goreng_gorengJump in PPE and total borrowings is for 2nd JUGCSU. it is the nature of shipbuilding company.Try look at other in same business.
from the report:
"The debt-equity ratio of the Group has increased to 0.483 from last quarter's 0.057. Additional funds were drawn down from existing credit lines to partly finance the Group's shipbuilding division to keep an orderly rolling work-in-progress, as well as from new credit facility to finance the Group's acquisition of its first self-elevating mobile offshore unit for chartering.The current gearing is within management comfort level."
if you have common sense just collect below RM2 and stop worrying.
cyeec2000Wondering why this time they want to proposed ESOS 15 percent, which is unfair for minority shareholder. The management should focus their bussiness growth rather than thinking how to gain more shares with cheaper price..If the ESOS success, the enlarged share volume with lower earning will suppress the share price even longer time..