SCOMI ENERGY (7045) THE HIDDEN GEM IN O&G BULL RUN
September 19, 2019 By Calvin Tan Smart Investment
Dear Investors/Traders,
SCOMIES (7045) IS A HIDDEN GEM OVERLOOKED AND FULL OF POTENTIAL. Why Is It So?
Answer:
These Are Our Findings
- At 7.5 Sen with NTA 16 sen SCOMIES is selling at a 54% Discount to NTA which is more than 30% Margin of safety required by Ben Graham
2. And SCOMIES Understates its Asset Value
See AR (2018) Scomies owned properties
Scomi Master: Land Five storey Freehold shop office. Date of purchase 31.10.1999
11,755 sq ft building: Sdn Bhd Geran 46494, Lot 42410 Pekan Cempaka, Daerah Petaling, Negeri Selangor, Malaysia
Book Value: Rm170,000
SEE THIS 5 STOREY FREEHOLD SHOP IN PJ ONLY VALUED AT RM170K?
DON’T TELL ME A 5 STOREY SHOPHOUSE IN PRIME PETALING JAYA WORTH ONLY RM170K
3) IF YOU TAKE OUT RM72.7 MILLION LOSSES BY IMPAIRMENT THIS QUARTER SCOMIES IS ACTUALLY POSITIVE
Please see Latest Qtr report
LBT in the segment increased by RM53.8 million as compared to 3 months ended 30th June 2018. This was mainly due to lower gross profit, higher operating expenses and an impairment of RM33.1 million in respect of amount due from ultimate holding company, in accordance with MFRS9.
PBT in the segment improved by RM38.8 million as compared to Preceding period. Gross profit was higher in the current period while operating expenses also increased. The Preceding period included an impairment of RM39.6 million to an offshore support vessel.
With these Impairments out of the way Scomies has a clean slate of strong balance sheet & prospects
4) SCOMIES HAS 3 STRONG MARGIN OF SAFETY
A) ITS BORROWINGS ARE ALL BACKED BY ASSETS & IT HAS RM67 MILLIONS IN CASH
B) IT HAS SURPLUS CASH LEND TO SCOMI THE PARENT COMPANY
C) ITS LATEST JOB AWARDS FOR DRILLING SERVICES IN KUWAIT IS A NICE RM600 MILLIONS IN REVENUE
5) AS SAUDI OIL FIELDS HAVE BEEN BOMBED THEY ARE TURNING TO KUWAIT (JV) TO DRILL AND PUMP MORE OIL
ELSE WHERE THERE WILL BE AN INCREASING OF DRILLING ACTIVITIES AS A SAFEGUARD AS OIL CLUSTERS ARE NOW VULNERABLE. THIS WILL BE VERY GOOD FOR SCOMIES DRILLING OIL BUSINESS
See Job Award in Kuwait
OTHERS Award of Contracts to Scomi Oiltools Sdn Bhd (SOSB) by Kuwait Oil Company
SCOMI ENERGY SERVICES BHD |
Type | Announcement |
Subject | OTHERS |
Description | Award of Contracts to Scomi Oiltools Sdn Bhd (SOSB) by Kuwait Oil Company |
1. Introduction The Company is pleased to announce that its wholly-owned subsidiary, Scomi Oiltools Sdn Bhd (SOSB), has entered into contracts with Kuwait Oil Company, for the provision of mud products and mud engineering services for deep drilling dated 31 January 2019 and for the provision of mud products and mud engineering services for development drilling dated 4 February 2019 (the “Contracts”). The Company received consent to announce the Contracts from KOC via their letter dated 21 March 2019 which was received by the Company on 22 March 2019. 2. The Contract Value The total estimated value of the Contracts is US$150 million (equivalent to Ringgit Malaysia 610 million). Type Announcement Subject OTHERS Description Award of Contracts to Scomi Oiltools Sdn Bhd (SOSB) by Kuwait Oil Company 1. Introduction The Company is pleased to announce that its wholly-owned subsidiary, Scomi Oiltools Sdn Bhd (SOSB), has entered into contracts with Kuwait Oil Company, for the provision of mud products and mud engineering services for deep drilling dated 31 January 2019 and for the provision of mud products and mud engineering services for development drilling dated 4 February 2019 (the “Contracts”). The Company received consent to announce the Contracts from KOC via their letter dated 21 March 2019 which was received by the Company on 22 March 2019. 2. The Contract Value The total estimated value of the Contracts is US$150 million (equivalent to Ringgit Malaysia 610 million). 3. Duration of the Project The Contracts are for a period of 5 years commencing from the date of the execution of the Contracts. 4. The effect on Net Assets of the Group The Contracts will not have any material effect on the Company’s Net Assets for the financial year ending 31 March 2019. They are expected to contribute positively to the Company’s earnings over the period of the Contracts. This announcement is dated on 25 March 2019. They bombed Saudi but will they bomb Kuwait? Probably not. After President Bush delivered Kuwait from Sadam by Operation Desert Storm the Americans have vested interest in Kuwait. So better keep Kuwait safe. SO there you are OTHERS Award of Contracts to Scomi Oiltools Sdn Bhd (SOSB) by Kuwait Oil Company SCOMI ENERGY SERVICES BHD Type Announcement Subject OTHERS Description Award of Contracts to Scomi Oiltools Sdn Bhd (SOSB) by Kuwait Oil Company 1. Introduction The Company is pleased to announce that its wholly-owned subsidiary, Scomi Oiltools Sdn Bhd (SOSB), has entered into contracts with Kuwait Oil Company, for the provision of mud products and mud engineering services for deep drilling dated 31 January 2019 and for the provision of mud products and mud engineering services for development drilling dated 4 February 2019 (the “Contracts”). The Company received consent to announce the Contracts from KOC via their letter dated 21 March 2019 which was received by the Company on 22 March 2019. 2. The Contract Value The total estimated value of the Contracts is US$150 million (equivalent to Ringgit Malaysia 610 million). 3. Duration of the Project The Contracts are for a period of 5 years commencing from the date of the execution of the Contracts. 4. The effect on Net Assets of the Group The Contracts will not have any material effect on the Company’s Net Assets for the financial year ending 31 March 2019. They are expected to contribute positively to the Company’s earnings over the period of the Contracts. This announcement is dated on 25 March 2019. They bombed Saudi but will they bomb Kuwait? Probably not. After President Bush delivered Kuwait from Sadam by Operation Desert Storm the Americans have vested interest in Kuwait. So better keep Kuwait safe. SO there you are Scomies has high margin of safety. Pared down and write off its impaiirments with clean slate of balance sheet. Secured Rm610 Millions drilling jobs that last 5 years. And great prospects in upstream business Only thing is its being overlooked & neglected by the masses But take a look at its shareholders (See Scomies 30 Top Holders) Only thing is its being overlooked & neglected by the masses But take a look at its shareholders (See Scomies 30 Top Holders) Scomies top holders are EPF & AMANAH SAHAM BUMI Through Scomi and through IJM the Ultimate Holder See one more 8. Meer Sadik Bin Habib Mohamed 42,783,996 At number 8 is Habib Boss with 42 million Scomi Energy shares Who is Meer Sadik Bin Habib Mohamed See An Extraordinary Shine (HABIB JEWELS) By Top 10 of Malaysia – 17 November, 2016 0 The world of fine jewellery is a niche market based on man’s eternal fascination with precious stones and works of art creatively contoured to enthrall the discerning. HABIB has been at the forefront of this industry evolving from the late 1950s, to become a signature Asian jeweler synonymous with innovative designs. The story of HABIB is a story of an enduring entrepreneurial spirit spawning from a small business to the established conglomerate. Taking over from his father, Dato’ Sri Meer Sadik Habib steered the company into a leading player within the industry in Asia. In a conversation with Top 10 of Malaysia, Dato’ Sri Meer spoke on his journey of executing a successful jewellery business based on the ingrained philosophy of gifting happiness to customers. SO IS SCOMIES (7045) A HIDDEN GEM WAITING TO BE DISCOVERED Calvin has a target price of 30 sen for Scomies (estimating twice that of Nta. This was what happened to our buy call on Carimin at 39 sen. Carimin crossed Rm1.00 recently) BEST REGARDS Calvin Tan Jurong West, Singapore |
Recent Posts
- GREAT SUCESSFUL INVESTMENTS YEAR 2019: OGSE BULL RUN THEME; 2020 MEDICAL GLOVE SUPERBULL THEME: 2021 IS PALM OIL CPO BULL RUN THEME December 31, 2020
- LOOKS LIKE PALM OIL GOING INTO A BULL TREND DUE TO LA LINA AGAIN IN 2020/21 November 24, 2020
- AFTER MEDICAL GLOVE BULL RUN THE NEXT UPCOMING BULL THEME IS PALM OIL November 1, 2020
- 1993 WAS ASIAN TIGER BULLRUN, 2020 IS HEALTH CARE BULL RUN BY COVID 19, GLOVE, FACEMASK & NOW SANITIZER IN NYLEX & ANCOM, Calvin Tan Research May 14, 2020
- PROLEXUS (8966) ProXmask: The ProActive High Quality FACE MASK product of Prolexus that excels , Calvin Tan Research May 6, 2020
- MTAG (0213) MTAG (0231) ANOTHER GLOVES, FACE MASKS & RESPIRATORS DISTRIBUTORS, Calvin Tan Research April 27, 2020
- QUESTION & ANSWERS FOR LUXCHEM April 17, 2020
- PM’s speech on Prihatin Economic Stimulus Package (NFCP FIBERISATION IS ON!!) Calvin Tan Research March 29, 2020
- NETX (0020) INSATIABLE BUYING BY NETX STAFF SHOWS IMMENSE POTENTIAL February 14, 2020
- T7 GLOBAL VERSUS CARIMIN, , UZMA, PENERGY, & DAYANG (Compare & Contrast) Calvin Tan Research January 17, 2020
- TELEKOM TENDERS: SOME POSSIBLE WINNERS, Calvin Tan Research December 29, 2019
- BUY NETX, OPCOM, REDTONE & CMSB (SACOFA) FOR MULTI YEARS BULL RUN IN NFCP STOCKS SOON, Calvin Tan Research November 27, 2019
- T7 WINNING SUBSEA JOBS WILL BE ANOTHER PENERGY FOR TOPSIDE November 22, 2019
- NAIM FIRED UP ON ALL 4 ENGINES BUT CMSB(2852) HAS 7 SEVEN ENGINES OF GROWTH, Calvin Tan Research 22 Nov November 22, 2019
- TOP 10 REASONS WHY NETX IS NOW THE BEST BUY FOR NFCP JUST AS VELESTO WAS FOR OGSE November 17, 2019
- TOP UNDERVALUE SHARES TO BUY NOW FOR 2020 BULL RUN TIME November 16, 2019
- CMSB (2852) OWNER OF KENANGA INVESTMENT BANK , CEMENT MONOPOLY, FIBER OPTIC TOWER MONOPOLY IN SARAWAK November 12, 2019
- THIS IS NOW THE BEST TIME TO DEPLOY MONEY FULLY INTO THE COMING BULL YEAR OF 2020, Calvin Tan Research November 11, 2019
- PLEASE WHATASPP CALVIN TAN AT 019-3384010 Or 014-6101668 FOR NEXT POST November 9, 2019
- NETX MISSION STATEMENT November 9, 2019
- NETX IN CHUN CHUN INTO e-KYC October 30, 2019
- SELL UZMA. SELL CARIMIN. BUY OPCOM, REDTONE, NETX & OTHERS October 28, 2019
- 9th M’sia Plan Top Budget Allocation For Infrar Powered Up Cement So 12 MP For NFCP Powers up Opcom, Redtone & Netx, Calvin Tan October 27, 2019
- WHY IS ASIABIO BUYING ONLY NETX AND NOT DGB, MLAB, XOX, VSOLAR FINTEC & OTHERS? Calvin Tan Research October 26, 2019
- ASIAOBIO BOSS BUYING SO MUCH NETX OVER ALL OTHERS SHOW GREAT POTENTIAL, Calvin Tan Research October 26, 2019
- DIRECTORS/INSIDERS STRONG BUYING SHOWS NFCP BULL RUN VERY SOON, Calvin Tan Research October 21, 2019
- MUI PROPERTY (3913) HIGH VALUE STOCK WITH POWERFUL GROWTH CATALYST, Calvin Tan Research October 18, 2019
- TOP 10 REASONS TO BUY REDTONE (0032) BENEFICIARY OF NFCP OR NATIONWIDE FIBERISATION, Calvin Tan Research October 2, 2019
- NETX HAS A 70/30 FIGHTING CHANCE TO SURVIVE AND DO WELL IN THE DIGITAL ECONOMY, Calvin Tan Research September 25, 2019
- SCOMIES, OPCOM & NETX September 23, 2019
- SCOMI ENERGY (7045) THE HIDDEN GEM IN O&G BULL RUN September 19, 2019
- OPCOM (0035) OPTIMAL OPTIC COMPANY : THE SUPER-STOCK OF THE DIGITAL ECONOMY, Calvin Tan Research September 16, 2019
- BUY UZMA (7250) AT 62 SEN. TARGET PRICE RM1.20 August 12, 2019
- BUY TA ENTERPRIZE FOR ITS 4.1 SEN DIVIDEND (ABOUT 6% YIELD WHICH IS TWICE THAT OF BANK FD RATE) June 15, 2019
- LAFARGE CEMENT UP 100% FROM RM2.25 TO RM4.50 TODAY. TIME TO BUY MASTEEL (5098) AS IT IS A LAGGARD June 14, 2019
- TESTIMONY OF YTL TO THE POWER OF PROVIDENCE June 8, 2019
- DOLOMITE(5835) UP 143% DUE TO ASSET SALE WILL ASB(1481) GO UP LIKEWISE BY ASSET SALE? June 7, 2019
- INVESTMENT NEWS FOR JUNE 2019 BY EAGLE VISION June 6, 2019
- A LOOK AT PETRONAS LATEST GOOD QUARTER RESULT OF 9% EARNINGS GROWTH, Calvin Tan Research June 1, 2019
- OIL & GAS BULL PAUSE. AFTER THIS POOR QUARTER RESULT DUE TO MONSOON O&G BULL RUN WILL RESUME, Calvin Tan Research May 26, 2019
- UZMA (7250) UTTERLY ZEALOUS MASTERING ALL. THE OnG LAGGARD WITH BEST POTENTIAL, Calvin Tan Research May 10, 2019
- (PART ONE) KUMPULAN PERANGSANG SELANGOR (5843) KUMPULAN PROACTIVELY SUPERCHARGED, Calvin Tan Research April 25, 2019
- THESE FIVE STOCKS MIGHT BENEFIT FROM ECRL SOUTH: Mui Prop, AsiaPac, MKH, L&G & Olympia, Calvin Tan Research April 17, 2019
- MKH (6114) METRO KAJANG WILL BENEFIT FROM ECRL REROUTE TO BANGI/KAJANG, Calvin Tan Research April 15, 2019
- IMAGO MALL OF ASIAPAC (4057) ECRL SIGNING WILL BRING BACK CHINA TOURISTS, Calvin Tan April 15, 2019
- ASIAPAC (4057) THREE CHUN CHUN BULL TARGETS FOR A 200% UPSIDE (ECRL, VMY 2020 & HSR April 11, 2019
- JTIASA (Fong Siling – Cold Eye & Pheim Fund Tan Chong Koay) Versus TDM (Dr. Neoh Soon Kean of Dynaquest) Calvin Tan Research April 5, 2019
- MAJU PERAK (8141) MAJULAH PERAK BY GEELY – PROTON PARTNERSHIP IN EXPANSION & GROWTH, Calvin Tan April 5, 2019
- TDM (2054) VERSUS MAJU PERAK (8141) POTENTIAL TO RISE 100% to 200% BY ECRL BOOSTER, Calvin Tan Research April 3, 2019
- ECRL (East Coastal Rail Link) Top Beneficiaries AZRB, T7 Global, Prestar, Masteel, Lafarge & TalamT, Calvin Tan Research March 20, 2019
Archives
- December 2020
- November 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- August 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015