Sunday, 3 August 2014

Kim Heng Offshore – Issues Profit Warnings for 2Q14

Kim Heng Offshore & Marine Holdings Limited (SGX: 5G2.SI ), a rig services and supply base Offshore and Marine service provider headquartered in Singapore, issues profit warning two days ago.   

The company said it has deemed it appropriate to issue a profit guidance in respect of the unaudited financial results of the Group for the second quarter ended 30 June 2014 (“2Q2014”). Based on a preliminary review of its financial results, the Group expects to report a lower net profit for 2Q2014 as compared to the prior year’s corresponding period, despite a slight increase in revenue. This is mainly due to a higher proportion of lower margin projects undertaken in 2Q2014 and the delay in arrival of certain rigs. The Singapore-based firm said it was in the process of finalizing its results for 2Q2014. Kim Heng Offshore / Marine said it would provide more details in its financial results for 2Q2014 on or before 14 August 2014.

According to Business Times, the company had said that it was exploring some merger and acquisition deals to expand its business, particularly to grow its supply-chain services to the offshore sector.  

Kim Heng IPO at S$0.25 with a starting market cap of S$177.5m. The IPO is 5.8x subscribed and stock peaking at 28percent on trading debut. 

Kim Heng share price closes at S$0.255 on Friday, with a market cap of S$181.1m. PE is 8.2 with EPS of S$0.031 (TTM) and PB is 1.8 with a NAV of S$0.14 (End Mar14). Dividend yield is estimated at 1.96%.

Its 1Q14 results as follow. 

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