This Page and what we are all talking about is Scomi Group BHD - your post only goes to reiterate the state that it is in and the need for them to consolidate what small possibilities they have to stop the fall and demise of the company (group). Regarding Ophir and to add.... if they don’t consolidate, Scomi group will only get a bite % of the potential that is Ophir and as is at present they can’t touch any of that until mid 2018. Our estimates on the potential revenue for Scomi from Ophir is nearer the $42 Mill over 3 years, but as there has been no recover or return yet lets wait and see and more to the point revenue is not profit!
In the statement there is also a mention of selling off assets to generate cash..... i look at Scomi group and see next to no viable assets that are worth selling off and certainly not generating the values mentioned so i turn my attention to Scomies and vessels sitting idle??? Indonesia at 79% utilization rate, that's great - what is the GP margin on that and of that what goes back to the group....
I know irrelevent to the topic but - Scomies planning to enter the US market in the near term, with what i may ask?? and can i just point out that the US is not the first time Scomi has been there before and there are plenty of good reasons they are not there now.... do a little research - some of the cases and suits make for a good entertaining read.... not to mention the failed buisness units and the whole reason they pulled out. If i remember rightly they were at one point associated with Derrick equipment company - probably the only reason they were the US in the first place but a Good Ole American company.... not sure you can break into that market with the set-up and possible assets to hand as is now..
The merger will also result in a reduction in administrative and operational expenses and dispense with the duplication that exists with three listed entities, as all businesses will be housed under one listed company.
Is this what is ment by - low gearing???? We call it redundancies........
The bottom line...from last qtr reports Scomi: PBT -87,810,000 ScomiES: PBT-72,242,000 ScomiEN: PBT -12,288,000 Combined: PBT -172,340,00
That's last qtr and this qtr due this month (Maybe delayed, i wonder why???) with share prices down, revenue down, operating costs have remained somewhat flatlining and court cases not helping anything, the question is..... what is the value of the new shares going to be... I see a false jump coming in the share prices as we re-open them today and the news of additional shares (potentially) being handed out will encourage this.... the fact still remains that the units are failing, the prices will head straight back down and this whole process will take months and months and months...
jaja7777 scomies doing ok, the last qr huge loss was due to huge amt of asset impairment (one off), specifically referred to idle osv vessel based on frs11(recoverable vs pojected cf). just because the mkt value of osv drop due to slow down in oil gas mkt they decide to write off its value, while the osv itself doing fine with min maintenance and without any leasing or financing commitment. when the market is ok would they write back the value? all was done to supress the share price .. buyback the share for the good of sgb
Fair comment but still we are looking at the group not just ES, intresting times will be when the qtr results come out and will be the real test. The doors are open again and as predicted - EN and ES have just taken a hit and BHD has taken a big leap, the spike will fall as the realisation will sets in, to some degree the propaganda works as everyone suddenly thinks they have a heap of extra shares coming their way....
As Boonming has mentioned, the prices will have to be watched carefully and the supposed release/consolidate/merger or what ever they decide to call it goes ahead, at what point during this process the share price becomes fixed????? and we can work out the real value of the new group...
for the time being - BHD will keep going down, ES and EN will recover slightly (Just my thoughts but lets see..)
Wow what a day......Huge amount of volume changing hands for these units. EN and ES ooouch... Lets see what tomorrow brings.
Just a foot note and off subject again (Apoligies for that) Director Tunku Alizan Raja Muhammad Alias has retired from the company. Any news where we are with the court case???? was he not instrumental in the supplemental contracts for the KL Monorail expansion - seems like a timely move???
I think we will hit all time record lows - the deal is a loss loss at the moment which ever way you look at it. The whole situation with warrants is all the more worrying too - absolutely no guarantees there and i think have only been thrown in as a sweetener to try and make up for the short fall in the share deal Its a shame for ES as it was looking like the only potential out of the bunch and now have been dragged into it - they are the only potential cash cow for the group...
Updates on the court case and qtr reports will see this lot plumit even further and at that point it will be time to close the doors once and for all.
Ophir - well behind schedule......First flow of oil from Ophir was expected to be the end of sept but that’s optimistic to say the least and it’s not immediate cash in the bank......
Scomies, was to be the beneficiary of that and the group would have been able to get its hands on its % of cash from it from mid-2018 onwards - if there were no more delays that is...... The predicted returns are wildly over optimistic too but that’s Scomi press for you... I would not be surprised if this whole exercise revolves around the group trying to get is hands on that cash as soon as possible.....
ES now at an all-time low, Group is plummeting and EN following. Qtr. reports will be the same as last or worse - Losses of 20+ Mill (USD) over a qtr can’t be sustained by a company of this size and when you look at the amount of loans etc..... doesn’t matter what Ophir brings in or could bring in????? Losses and loans are not investment opportunities so all you can do is sell off assets, they have just made that statement, vessels are first to go, only problem is that buyer needs to be found and any buyer will look at this situation and will be looking for a barging..... Apart from the vessels there really isn’t anything else of value to sell off. They talk about new technology and the Chinese.... Scomi just doesn’t have this and nothing that can’t be found elsewhere. Selling something to the Chinese might be a quick short term fix for them both but it will not be substantial and not stop the rot from above.
As investors in the market we like to look a trends.... if we see something we have invested in going down we can either jump or cross our fingers and convince ourselves that it will go back up or wait for an all time low and reinvest. Vary rarely do we seriously take a look at the cold hard facts....... I hope that none of you are waiting for things to go back up and any of you that are waiting for an all time low..... its coming but Good Luck if you do go down that path.
Jaja7777 Dont believe everything u read in newspaper I.e on saturday about share buyback.. on monday shareswap But everything was planned to supressed share price so that will be cheap for them to buyback Who feeds info to newspaper.?
Scomies will not sell their vessel The vessels are not under financing or leasing The gearing of scomies is low When income from ophir come.. the % can easily cover the min loss easily.. the huge loss shown in the last qr is huge impairment of asset (vessels) this just to make thing look bad.. When scomies expecting income from ophir they wil buy back the share
When ophir well operating.. must be scomies also supplying chemical for drilling and waste, and opportunity for vessel will be utilized
What is the purpose of star biz journalist using wrong calculation to potray the benefit of consolidation? On saturday they say buyback On monday the say share swap Back up with wrong calculation tt could mislead investor
Freeman, may I know why you said "buyer will lose 15% at 0.12" and on the other hand you also said "everything was planned to supressed share price so that will be cheap for them to buyback."
So we should let the Scomi big shareholders to buy back or what? Or maybe something is still going in the deal? Please clarify. Thanks bro.
ES is taking the brunt of this exercise with a five year low and no signs that it will stop. EN flatlining...... but given its potential im sure this is happening in background and would other-wise be heading South too The group - still slowly but surly heading South.
Court case updates????? and latest Quarterly reports please......
In the event that the Proposed Mergers are not implemented, the basis for the Proposed Bonus Issue of Warrants will be adjusted such that the potential aggregate number of new Consolidated Shares arising from the exercise of all outstanding Warrants will not exceed 50% of the total number of issued shares of the Company (excluding treasury shares and before the exercise of the said Warrants) at all times.
Warrants are a way for a company to raise money through equity, correct? warrants come with a min life span just like options - so how long for this one if it does go ahead Warrants in my opinion are for mid to long term investments - Does Scomi have the time to turn this mess around? Warrants are usually offered at a price lower than that of a stock, Correct? and we dont know what the value will be yet....
I love maths and i love speculation.... but in this case if you dont know the value of X and the value of Y or the terms of the warrants now let alone if or when this happens you will be praying not speculating.... And that all assumes that the share prices will recover to an acceptable level not keep diving as they are.
Any news on the court and the qrt reports for sure will see them heading south even quicker.
how can you total up the warrant and the consolidated share units? apple is not equal to orange.
NEW SHARE : 434,783 free WARRANT : 304,348 TOTAL SHARE+ WARRANT : 739,130 <<<<<<<<<(???????)
AT PRICE OF NEW SHARE : 0.115 (??????????) VALUE POST CONSOL : 85,000 (LOSS 15%) (??????)
supposing 434783 X 0.23 (consolidated unit price) = 100K (total cost will be the same) but you have free warrant 304,348 units. warrant price I not sure yet (Warrant price is not exercise price)
the warrant has intrinsic value of RM0.113 .. refer proposal that is why i m using 0.115 as basis price.. as assumption if i using 0.113 the loses will be a lot more pls do yr own calculation and the price post consol and merger will not be 0.23 but 0.115 if only consol then it is correct the price will be 0.23, but there will adjustment in the quantum
so price will be diluted to 0.115.. of course if the price can climb to .23 u can consider the warrant as profit
I would say freeman's calculation is about right. However, when you combine the revenue of three companies, the revenue, cash flow, NTA, ES and expense will be much more different and my guess is now is the worst case scenario.
It should do better than 0.115. A more rational pricing for Scomi will be 0.16 at least.
Scomi Group: To strengthen its merged entity. Scomi Group will focus on strengthening its merged entity with Scomi Energy Services and Scomi Engineering’s financial fundamentals with the implementation of cash realisation initiatives. The company said that cash realisation initiatives would help it raise at least USD50m (RM213.6m) by disposing of and/or streamlining the merged entity’s existing assets within 12 months from the completion of the exercise. It will also continue to pursue the current growth strategies of both Scomi Energy and Scomi Engineering to improve their financial performance, moving forward. (StarBiz)
Disposing of and/or streamlining the merged entity’s existing assets within 12 months from the completion of the exercise to raise USD50m, that’s great but looking at the last YOY and more importantly the last qtr - fully year the losses were over USD43m, last qtr they lost over USD 22m and this coming qtr will be no different USD 25m, revenue is effect 50% less what it was in 2015/16 and that is for the group (Scomi) only not including EN and ES. The group doesn’t have much in the way of debts although loans are high, but EN and ES are running high on debt and loans.
USD 50 million is not going to go very far in 12 months’ time.... disposing of assets will not be quick as Scomi doesn’t have that much and will be reliant on the vessels, the merger has to happen for that to happen That and the cash will not be realised overnight
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synergyCT
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Posted by synergyCT > 2017-08-22 11:32 | Report Abuse
FYI, trading in SCOMI's shares will resume with effect from 2.30 p.m., Tuesday, 22 August 2017.