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Shipping companies are cyclical business. In boom time, they make excellent profits (take a look at their 07 earnings) and it bust they will make a loss since freight rates are low. I don't think any local shipping company besides Mercator Lines made a profit in 2009. Mercator Lines fixed 70% of its revenue at pre-crisis charter rates on long term contracts hence its profitability.
Since the shipping industry is bottoming out, freight rates are starting to rise. Even Berlian made a profit in Q1 10 due to increased demands for its vessels. Moreover, with vessel valuation at a bottom, it makes sense to acquire vessels at dirt cheap prices.
Berlian strategy is correct...the question is whether can it execute it to maximise shareholder's returns over the next 3 years...
alexchia01 ( Date: 29-May-2010 14:40) Posted:
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Rights issue is meant for company to raise money to increase company's value and in the long run increase shareholders' value.
If the company is raising money for a project that could increase the company's future profit, then the Rights Issue is good.
If the company raise money to increase their cash flow because they loss money from their operation, than you better be-careful.
My biggest concern with this company is that it made a loss in 2009 and now they are asking for more money to purchase more vessels.
If they cannot make money with their current fleet, what make them so sure they can make money money with additional vessels?
yoril_xq ( Date: 26-May-2010 17:41) Posted:
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yoril_xq ( Date: 26-May-2010 17:41) Posted:
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It appears we are now again experiencing days when one
can just "whack" on any stock and make money...
Thus a lot of tai-tais will be flocking back again to watch the POEMS screens
all over the island...
freeme ( Date: 27-May-2010 11:11) Posted:
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rights issue again.. thats abit bull s.h.it...keep asking money
Cosco Singapore is mainly a shipbuilder. Anyway, Berlian is a potential valuation & cyclical play.
Among the large shipping companies on SGX, STX and NOL are near their one-year highs and trading above net asset values.
Stock.....Price.....NAV......EPS.........52wHigh....52wLow....P/NAV...P/E
NOL.......2.14.....1.50......(0.50).....2.16.........1.15.........1.42.......(4.3)
STX.......16.06....14.2.....(0.42)......17.0........10.02.......1.13.......(38 )
Berlian...0.105....0.205...(0.0028)...0.14........0.065.......0.51.......(37.5)*
* Estimate based on 9M09
I'm expected a slight full-year loss for Berlian Laju for 2009, but from the way the share price has inched up last week, next week's results release may surprise on the up side.
starbugs ( Date: 20-Mar-2010 23:21) Posted:
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http://hugin.info/135041/R/1386424/345107.pdf
1. CECO lost USD242.5mil in 2009, USD160mil of which was in Q4 alone. The loss thus seems to be accelerating. All 3 segments (bulk, gas, marine services) lost money in Q4.
2. CECO's equity is only US$48.1mil (versus BLT's offer of US$170mil, which now looks generous compared to just 3 months ago)
3. CECO's net gearing (net debt/equity) is now a staggering 8.5
All in, it looks like a blessing for Berlian Laju. CECO's share price dropped more than 7% after the news of the deal collapse broke.
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_15D13CDF1B03212A482576EB001BE6E2/$file/2010.03.19_CECO_Announcement2.pdf?openelement
Indonesia's Berlian Laju drops take-over bid for Camillo Eitzen
By Pearl Bantillo
SINGAPORE (ICIS news)--Indonesian chemical shipping giant PT Berlian Laju Tankers Tbk (BLT) decided to withdraw its offer for Norwegian shipping firm Camillo Eitzen & Co (CECO) after months of delays in closing the acquisition.
“BLT’s board has decided to withdraw its indicative proposal for the voluntary offer for CECO effective immediately,” CECO said in a statement issued on Friday.
The Norwegian company said it would continue to “pursue other strategic alternatives.”
BLT agreed to acquire CECO in October 2009 for Norwegian kroner (NKr) 1bn ($170.4m), which would have made the Indonesian firm owner of the biggest fleet of chemical tankers in the world.
The deal was supposed to close in November but negotiations dragged on. In late January, BLT lost exclusivity to the deal.
“Since that time BLT and CECO have had discussions in order to attempt to re-establish a mutually binding commitment to the transaction,” said the Oslo-based company said, but added, that “such efforts have failed” up to this time.
Among the problems that cropped up during negotiations was the inability of BLT to secure regulatory approval to float bonds to raise the funds required for CECO’s purchase.
“On the whole, it is probably a good thing that they [BLT] don’t have to worry about consolidating this entity to their operations,” said Buddhika Piyasena, a Singapore-based shipping analyst at Fitch Ratings.
“That would help their liquidity a lot,” he said, citing that long-term benefits of a CECO acquisition could not be ascertained.
Had the acquisition pushed through, BLT would have 157 chemical tankers, 14 oil tankers, 42 gas tankers, 50-60 bulk carries and a floating production storage and offloading vessel.
“In terms of synergies, pricing power, I don’t think it would have made a difference. Any benefit would have been [just] cost reduction,” said Piyasena.
“It [acquisition] can work well but we thought there are quite a bit of risks associated with it as well, given that they could be taking on a highly leveraged entity,” Piyasena said.
CECO’s purchase would provide BLT close to a 50% stake in Eitzen Chemical, which was deep in debts accumulated through a string of acquisitions it made over the past two years, he said.
The Asian shipping industry remains in a lull, with recovery only possible in late 2011, but there were some bright spots being gleaned in the chemicals segment, Piyasena said.
“We are not seeing significant slide in [chemicals freight] rates. Also, volumes are seeing some sort of improvement,” he added.
($1 = NKr5.87)
19.02.2010
Source: Trade Winds
Berlian Laju Tanker (BLT) and Connecticut subsidiary Chembulk have just begun a contract of affreightment (COA) with Petrobras to move ethanol cargoes on a route previously dominated by two competitors.
A market source says the chemical-tanker players will carry between 80,000 and 300,000 tonnes over a year from Brazil to the Far East. The deal, estimated to be worth about $12m to $18m per year, includes an option for a one-year extension.
Broker Gustavo Sa, whose Brazilian brokerage Tide Maritime Afretamentos was involved in garnering the COA, confirms the deal but declines to give details. Chembulk also declines to comment.
Although Indonesia-based BLT has carried cargoes on the route before, Petrobras's chemical exports to the Far East have traditionally been dominated by Stolt-Nielsen and Odfjell, a market source in Brazil says.
The Norwegian owners and Connecticut's Fairfield Chemical Carriers are all understood to have bid for the latest Petrobras COA on the route.
Twenty-seven BLT and Chembulk vessels that may be nominated to carry cargoes on the route are fully stainless steel and have an average age of 4.5 years, the source adds.
how u know which is red red... tired waiting hahaha
des_khor ( Date: 30-Dec-2009 23:10) Posted:
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so long liao... still the same price.. when can go up.. haiz.. everyone??