1. One of Malaysia’s largest OSV providers; dominant in AHTS and AWB with a relatively young fleet (7 years).
2. Vessels are Malaysia-flagged and will be able to capitalise on the stringent Malaysian cabotage rules.
3. Icon is going through a challenging macro environment, as it faces bottoming of DCR but gradual recovery of OSV utilisation.
4. Returns outlook is improving but the pace of recovery will be gradual, backed by its continuous efforts to optimise costs and OSV utilisation.
5. M&A action is a key catalyst to unlocking values
Upside
1. Resilient. Ahead of peers in cost management. More jobs expected with PETRONAS giving preference to local service providers over foreign-flagged vessels.
2. New management with commendable track record gives confidence to the market and eliminates past negative perception (corporate governance, cost management).
3. M&A action is not entirely ruled out as Government –owned Ekuinas, a 43% shareholder, aims to create values from a PE perspective.
Icons ESG roadmap is a work-in-progress (WIP). It is understandably behind its peers in this segment, for its immediate, primary targets are to prioritize improvement of its financials and de-leveraging of its balance sheet on a sustainable basis.
In essence, Icons turnaround story has just begun to gain traction.
Brent crude oil was trading at US$86 (about RM357.59) per barrel, while crude palm oil closed at an all-time high on Wednesday with the benchmark palm oil contract for January 2022 rising by RM127 to RM5,071 a tonne.
Everyone who has been following oil markets during the pandemic knows that WTI crude prices reached negative levels in an unprecedented turn of events in April 2020.
The culprit back then was the overflowing Cushing storage hub.
In 2021, America's largest oil storage hub is once again about to play a crucial role in what could be the next major price shock in oil markets.
But this time, the opposite is true. Crude inventories in the crucial oil storage facility are plunging at an alarming rate.
According to JP Morgan, Cushing may just be weeks away from being ``effectively out of crude''
You see, a gas crisis in Europe and Asia has already led to a large, and unexpected jump in demand. This in combination with OPEC's overcompliance to its output cuts has created a very tight oil market
Without additional volumes, JP Morgan expects the Cushing hub to reach critical levels in the next two months, setting crude prices up for a serious spike.
QR good, price down. QR bad , price up. No news sudden up. News out , price down. Answer ? Trading is gambling . You cannot beat the market . You are not there to know what going on . You have to prepare to hold a year or 2 to get return when ever you entered a counter.
#cashflow Nice. I am holding nearly 15,000 lots. Long term play. 28/10/2021 10:08 PM
Wow this is even better... Mabel feels inspired..
Will add more if it drops..
9M21 results were in line with our expectations, on the back of stronger QoQ performance, driven by its drilling ops. The company is on track to meet our expectation amid a sequentially softer 4Q21, as seasonal weakness kicks in. SOP-based TP (unchanged) equates to 1x PBV, valuing the:
(i) JU ops at 0.6x EV/ replacement value (9 sen/shr) and (ii) OSV ops at 0.7x PBV, (7 sen/shr).
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Posted by cashflow > 2021-10-18 12:31 | Report Abuse
Boiling to rocket