Vested interest with 2 lots
Given that marine reported results earlier, we already knew Profits will be dragged down.
But the next statement should be Utility net profits up 72% due to divestment gain.
Without divestment gains, utility NP will be lower than last year.
The known fact is Singapore utility market rate is getting worse and it should not come as a surprise.
But look at this:
Trumpeting on India's contribution? India is dragging down bottom line. Overseas market taken together is flat.
However, to be fair, divestment gains as part of capital recycling mean it is hardly once-off thing and should be consider as part of the business, but we cannot expect it to be recurring annually either.
Lastly, I am hardly convinced that the impairment by marine for Sete Brazil is sufficient, given the bulk of payment for still ships are due upon delivery. What about the remaining 4 that have not started construction, is the impairment going to be a yearly thing for the next 2 years?
Marine is making Sembmarine fiances really ugly with cash flow affected and debts increasing. Dividends is cut is hardly surprising, analysts were talking about special dividends from the divestment gains, I was just hoping to get status quo. So, results is below expectations.
A spade is a spade. It's lousy results.
But will it survive? Is it worthless?
I did make a bid some time back at $2.1. But didn't get any. Maybe if it goes that low or beyond. I might be adding.
It will not be due to valuation based on earning or yield then.