CH Offshore

[smallcaps]

As long as there is trial, there is hope.

In October 2013, the Group commenced legal proceedings in London against PDV Marina S.A. (“PDV Marina”) and Astilleros De Venezuela C.A. for a claim relating to outstanding charterhire amounting to approximately US$56 million (which amount includes interest claimed) in respect of the charter of the vessels the “Amethyst” and the “Turquoise”.

The Company arrested vessels belonging to PDV Marina as security for its claim. PDV Marina made payment of US$70 million into court as security for the Company’s claim including interest and costs. Accordingly, the Company released PDV Marina’s vessels.

The trial has been fixed on 20 April 2015.

If CH win the suit, US$56 million is almost 8 cents per share. The company balance sheet is strong and seems to have a clear plan for future management of its business. For these reasons, among others, I have decided to take a small long position in this counter.

Vested.

Did you read the latest settlement by Exxon with PDVSA. Exxon only managed to get about 10% of what they are asking for after so many years. Exxon being an American co n deep pockets for the best lawyers can only get 10%. This hardly covers the interest lost on all those years. what do you think CHO being a Sgp co and not deep pockets can get out of the court case? I think if CHO can get the same 10% it would be good enough. If they manage to get any money it will be a bonus. I think you shouldn't be investing in CHO base on this but base on the underlying biz instead.

I don't see a clear plan for future mgt of the biz. Could you care to elaborate. What I see is that they are just milking the biz/boats with no growth of the biz. WYSIWYG

Ex-shareholder

Can't agree with you more. CHH has done well selling to Scomi when Msians were hungry for whatever reasons and bought back cheap from the same company for whatever reasons.

Of course, they are now contented with Falcon at the helm and keep milking it. CHO will stay where they are... not that their quality is bad but just that these real businessmen knows how tough the OSV markets are and have not been throwing good $ after bad.

Has anyone ever asked why the PE at Jaya bailed out at a discount to book value just when everything look so rosy only recently? PE that stupid meh?

The only forward for this tough industry is to replicate what Tan Kim Seng has done to Ezra, KS Energy, Ezion and Swissco.

Fortunately Peh is a good man and did not resort to such darling tactics. Boring but at least morally ethical.

Odd Lots
Vested
GG

I dun think Chuan Hup bought back shares from Scomi. Instead, it was Falcon that bought the 29.07% stake from Scomi.

And Peh probably controls more shares than Falcon now.

Just to recap why Falcon bought into CHO in 2010:

http://www.theedgemalaysia.com/features/...e-buy.html

Wouldn’t it have been less expensive for Falcon Energy to acquire a fleet of AHTS vessels directly? According to Tan, there were no opportunities to acquire such vessels cheaply, even during the darkest hours of the credit crunch. “If you’re looking for a new vessel, constructing it is cheaper than buying from the market. Ready-made vessels are still not that cheap, despite the crisis. People have not been desperate to sell. On the other hand, yards are very sluggish.”

[greengiraffe]

As long as there is trial, there is hope.

If CH win the suit, US$56 million is almost 8 cents per share. The company balance sheet is strong and seems to have a clear plan for future management of its business. For these reasons, among others, I have decided to take a small long position in this counter.

Vested.

Did you read the latest settlement by Exxon with PDVSA. Exxon only managed to get about 10% of what they are asking for after so many years. Exxon being an American co n deep pockets for the best lawyers can only get 10%. This hardly covers the interest lost on all those years. what do you think CHO being a Sgp co and not deep pockets can get out of the court case? I think if CHO can get the same 10% it would be good enough. If they manage to get any money it will be a bonus. I think you shouldn't be investing in CHO base on this but base on the underlying biz instead.

I don't see a clear plan for future mgt of the biz. Could you care to elaborate. What I see is that they are just milking the biz/boats with no growth of the biz. WYSIWYG

Ex-shareholder

Can't agree with you more. CHH has done well selling to Scomi when Msians were hungry for whatever reasons and bought back cheap from the same company for whatever reasons.

Of course, they are now contented with Falcon at the helm and keep milking it. CHO will stay where they are... not that their quality is bad but just that these real businessmen knows how tough the OSV markets are and have not been throwing good $ after bad.

Has anyone ever asked why the PE at Jaya bailed out at a discount to book value just when everything look so rosy only recently? PE that stupid meh?

The only forward for this tough industry is to replicate what Tan Kim Seng has done to Ezra, KS Energy, Ezion and Swissco.

Fortunately Peh is a good man and did not resort to such darling tactics. Boring but at least morally ethical.

Odd Lots
Vested
GG

I dun think Chuan Hup bought back shares from Scomi. Instead, it was Falcon that bought the 29.07% stake from Scomi.

And Peh probably controls more shares than Falcon now.

Just to recap why Falcon bought into CHO in 2010:

http://www.theedgemalaysia.com/features/...e-buy.html

Wouldn’t it have been less expensive for Falcon Energy to acquire a fleet of AHTS vessels directly? According to Tan, there were no opportunities to acquire such vessels cheaply, even during the darkest hours of the credit crunch. “If you’re looking for a new vessel, constructing it is cheaper than buying from the market. Ready-made vessels are still not that cheap, despite the crisis. People have not been desperate to sell. On the other hand, yards are very sluggish.”

Told u guys... I m getting old. Whatever that is, CHH is shrewed enough not to get back into a tough shipping business.

In addition, like the old saying goes, 1 mountain cannot accomodate 2 tigers. Falcon and CHH are both in CHO as consenting partners - no different from that of UOL and SM Summit in UIC.

From day 1, CHH sale of CHO to Scomi was a typical Msian style non-GO transactions. Naturally, when Scomi wants out, CHH got to look for a friendly party to buy back and hence Falcon.

Anyway, with oil prices languishing, OSV sector is a done for one and hence it pays to be extra cautious. Even a quality company will at best survive better.

GG

[Bluechipfan]

As long as there is trial, there is hope.

In October 2013, the Group commenced legal proceedings in London against PDV Marina S.A. (“PDV Marina”) and Astilleros De Venezuela C.A. for a claim relating to outstanding charterhire amounting to approximately US$56 million (which amount includes interest claimed) in respect of the charter of the vessels the “Amethyst” and the “Turquoise”.

The Company arrested vessels belonging to PDV Marina as security for its claim. PDV Marina made payment of US$70 million into court as security for the Company’s claim including interest and costs. Accordingly, the Company released PDV Marina’s vessels.

The trial has been fixed on 20 April 2015.

If CH win the suit, US$56 million is almost 8 cents per share. The company balance sheet is strong and seems to have a clear plan for future management of its business. For these reasons, among others, I have decided to take a small long position in this counter.

Vested.

Did you read the latest settlement by Exxon with PDVSA. Exxon only managed to get about 10% of what they are asking for after so many years. Exxon being an American co n deep pockets for the best lawyers can only get 10%. This hardly covers the interest lost on all those years. what do you think CHO being a Sgp co and not deep pockets can get out of the court case? I think if CHO can get the same 10% it would be good enough. If they manage to get any money it will be a bonus. I think you shouldn't be investing in CHO base on this but base on the underlying biz instead.

I don't see a clear plan for future mgt of the biz. Could you care to elaborate. What I see is that they are just milking the biz/boats with no growth of the biz. WYSIWYG

Ex-shareholder

The suit to recover the unpaid receivable was just an added spice, the main dish is of course the company's underlying business.

The 'clear plan for future management of business' is the inference I draw based on available information. For once, the company did not anyhow expand fleet with the cash it has. This is wise given the current tough operating environment. It also did not sit on the cash pile and chose to distribute it back to the shareholders, which is rather sound as well. It appears that the company is contended to operating on existing fleet and maximise charter rate to continue generate profits and such profits is envisaged to be passed on as dividend to shareholders.

The industry is cyclical and if they can still generate profits in this down cycle and on top of that, pays special dividend it's reflection of a well managed company. Of course, we don't know everything and we can't be 100% sure but that's the nature of investment, we have to make our own decision.

The lawsuit just add more spice into it, the hearing is only 6 months away. I think it's worth taking a small position. That's my personal view only.

[smallcaps]

O&M research from Maybank with a section on OSV owners:

http://research.maybank-ib.com/pdf/docum...4_5985.pdf

Tightening OSV-to-rig ratio. Based on supply growth and assuming no
attrition, we see a dwindling OSV-to-rig ratio (Figure 22), even at 80% rig
utilisation. This would suggest sustained demand for OSVs.

[smallcaps]

https://www.justice.gov.uk/courts/court-...footer-bar

ROLLS BUILDING
COURT 25
Before MR JUSTICE PHILLIPS
Friday 28 November 2014
At 12-00
CASE MANAGEMENT CONFERENCE
2013-955 CH Offshore Ltd v PDV Marina S.A.

[smallcaps]

CHO tops the list in the following fool article:

https://www.fool.sg/2014/12/02/these-sha...es-around/

These Shares Might Be the Strongest Oil & Gas Shares Around

[Bluechipfan]

Halted along with CHH and Falcon, what's brewing? Vested.

[Bluechipfan]

Of the three CHO saw increased volume and share price prior to the halt but not the other two.

[BlueKelah]

Profit warning since oil price drop??

via Galaxy Tab S with Tapatalk

[Bluechipfan]

Profit warning since oil price drop??

via Galaxy Tab S with Tapatalk

If so after market announcement will do, don't have to halt.