Journey to Wealth
Scomi Marine - 1Q12 beat expectatio
Period 1Q12
Actual vs. Expectations
1Q12 results beat our estimate where its net profit of RM16.4m made up 56% of our FY12 fullyear estimate.
This was fuelled by broad-base strong results: Marine Logistics' (ML) 1Q12 EBIT accounted for 42% of our full-year estimate while operating profit from Offshore Support (OS) making up 78% of our full-year projection.
Dividends No dividend was declared, as expected.
Key Results Highlights
1Q12 revenue dipped 16% QoQ to RM90.8, due to lower 1) coal tonnage carried at ML (to 5,693k MT from 6,433k MT), and 2) average vessel utilisation at OS (to 80.3% from 94.1%).
1Q12 operating profit surged sharply to RM17.8m from RM4.5m in the preceding quarter due to saving in operational costs and interest expenses.
In 4Q11, Scomi Marine reported net loss of RM139.0m was mainly due to RM143.3m impairment charges.
Outlook Tonnage carried is expected to grow 10% p.a., while charter rates to rise 2% annually.
No further provision is expected.
Change to Forecasts
Despite strong 1Q12, we would like to see its earnings consistency in 2Q12 before adjusting our numbers. Thus, no changes to estimates for now.
Rating NOT RATED
Valuation Maintain our fair value of RM0.665/share on cumcash distribution basis, based on 7.5x CY12 PER.
Ex-cash distribution of 18.5 sen, fair value will be adjusted to RM0.48/share.
Risks Further provision for impairment.
Slow down in tonnage carried at ML.
Vessel charter rates drop unexpectedly.
Source: Kenanga
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