Penguin International

[CY09]

One possible reason was their success in getting two out of the 14 idle crewboats into work/sold. Otherwise no news

[touzi]

A pessimistic message from the Chairman. I like the honesty even though I personally feel that things may have reached the bottom with the bankruptcies and chapter 11 filing surfacing. Of course it may stay at the bottom for a long time before picking up.

In a protracted crisis such as the one that we are experiencing right now, it is tempting for management to declare that “the worst is over” or that “the market
has bottomed out”, in an attempt to bolster employee morale and investor confidence.

In our view, such proclamations at this point in time are nothing more than public relations spin, occasionally drawing on industry reports by vested parties.

At Penguin, we have always chosen to confront reality head-on, no matter how painful it is.

The reality we see is that the business environment for the offshore oil and gas industry will continue to deteriorate for the foreseeable future, notwithstanding occasional upticks in oil prices. Financing has all but dried up, charter and utilisation rates remain under pressure, there are way too many vessels vying for too few jobs, and there is a growing rank of distressed ship owners and builders who are willing to win work at any cost.
The forces of this deteriorating market have also weighed heavily on Penguin.

Look forward to making my longest domestic journey of the year to the home of the flex on 27 Apr. Have to take a full day of leave because of the timing and distance.

[Behappyalways]

"This is due to, among other factors, the oversupply of rigs and support vessels. It will take some time before the industry fully recovers,"

World's top rig builder Keppel says no rescue in sight for offshore oil services
http://www.cnbc.com/2017/04/20/keppel-sa...-away.html

[CY09]

http://infopub.sgx.com/FileOpen/Penguin_...eID=452648

Penguin has delivered a rather good results with a massive draw down on its inventories which has freed up a significant amount of cash. IMO, it will be enough for the company to tide over for this long winter

[dydx]

http://infopub.sgx.com/FileOpen/Penguin_...eID=452648

Penguin has delivered a rather good results with a massive draw down on its inventories which has freed up a significant amount of cash. IMO, it will be enough for the company to tide over for this long winter

In Q1, Penguin also managed to sell some older boats in its charter fleet for $4882k and realised a $1500k gain on disposal of PPE. I am positively surprised that older boats can still be sold at decent profits even under the current weak market conditions. This is s reliable indication that there is still demand and a market for Penguin's crewboats and ferries, and Penguin's accounting for and depreciation on PPE are quite conservative.

Charter income and cash flow from depreciation (in excess of $8.0m a year) on PPE related to the charter fleet should continue to bring in positive cash flow to retire the outstanding term loans of $9.14m and add to Penguin's cash balance which stood at $34.4m as at 31Mar17.

[karlmarx]

Prudent move to reduce inventory even though they are sold at slightly above cost. It is now unlikely that Penguin will suffer the fate which befell the majority of the OSV owners and operators.

[dydx]

I believe the below news report should have a direct positive bearing on the short-to-medium term demand for crew boats in Malaysia's offshore O&G exploration & production market.....
http://www.thestar.com.my/business/busin...-with-mhs/

[dydx]

Triyards announced its 3Q results last evening, with a big gross loss of (USD10.3m) against a substantially lower revenue of USD30.9m, trade receivables and total debts kept at unusually high levels, and a huge USD45.1m impairment on assets.....
http://infopub.sgx.com/FileOpen/TRIYARDS...eID=462335

It looks like Triyards and its aluminium boat building subsidiary Strategic Marine - a direct competitor to Penguin - are close to being totally incapacitated as a player in the O&G sector.

[Behappyalways]

Is Triyards having problems due to the environment that it is working in or due to competitors eating away their biz? If it is due to the industry downturn then it is bad for Penguin too who is a direct competitor. If it is due to competiveness of Penguin that leads to Triyards having problems then it is good for Penguin.

[dydx]

Is Triyards having problems due to the environment that it is working in or due to competitors eating away their biz? If it is due to the industry downturn then it is bad for Penguin too who is a direct competitor. If it is due to competiveness of Penguin that leads to Triyards having problems then it is good for Penguin.

As at 30Jun17, Triyards' B/S carried total debts of USD186.5m, trade and other payables totalling USD110.8m, and had cash of only USD19.8m. Its huge trade receivables balance of USD230.0m include substantial amounts from other Ezra Group companies now undergoing restructuring under U.S. Chapter 11 protection. There is a clear liquidity problem here. It looks like Triyards would likely need a white knight and a lot of luck to come out from this abyss in one piece.