Kreuz

Forummers who are tired of S-chips may like to take a look at this stock – KREUZ.
Some brief info on the company:
Kreuz provides subsea construction and installation services which support new offshore installation and construction projects, as well as IRM of existing offshore production and pipeline facilities. Services include:
Subsea Construction and Installation:
Subsea support for pipeline and jacket installation; riser installation and installation of remote shut down valves, spools, hot taps;
Subsea support for decommissioning of platforms;
Subsea tie-ins involving pipeline connections to pipeline end manifolds, offshore platforms and other pipelines;
Subsea pipeline hot tap and leak repairs; and
Stabilisation of pipelines and installation of pipeline crossings.
Subsea IRM:
Subsea support and survey using diving/ROV for stabilisation of steel pipelines, laying of cables, flexible flow lines, and installation of risers, spool pieces, conductor guide framings;
Non-destructive testing of steel and concrete structures and pipelines to confirm integrity and assess damage and stability of offshore structures and pipelines; and
Repair and remedial works on problems reported during inspection surveys.
FINANCIAL DATA
Period ---Revenue

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Nett Profit----EPS
FY09

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US$56.3M –US$8.3M
FY10 –---US$54.5M---US$7.9M –1.5 cts(US)
FY11

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US$153.8M --US$26.6M –5.2 cts(US)
9mths12 –US$155.3M –US$33.9M –6.29 cts(US) – Dividend – 1.1 cts(S)
According to Kreuz Annual Report of 2011, Swiber is the major shareholder of Kreuz with a stake of 63.17%. In April 2012, the company made a placement issue of 50 million shares at 34 cts. The number of free float shares is about 26.5% (around 148 million shares).
3Q12 Results:
Kreuz is among those stocks having uneven quarterly results that depends much on the size & scope of the projects and their completion schedules. Its nett profit for the first 9 months of FY12 is US$33.9M or 33% more than that of previous year. EPS for 9 months is 6.29 cts(US). Declared an interim dividend of 1.1cts(S).
OUTLOOK:
Current level of oil prices has given the offshore oil and gas industry a positive outlook. Capex for subsea market in Asia is expected to be over US$7 billion from 2011 to 2015 as compared to US$2.25 billion over the previous 5 years. Total annual expenditure on remotely operated underwater vehicles (ROVs) support of underwater operations is expected to grow from US$891 million in 2010 to US$1,692 million in 2015.
Management is optimistic of further growth for the company. As at November 2012, Kreuz has order book of US$220 million as compared to US$185 million in 2011 and US$115 million in 2010. With the recent acquisition of a Diving Support Vessel to enhance its subsea capabilities in offshore construction and installation projects, Kreuz looks set to further expand its operations. The 9-month-nett profit of US$33.9 million has already surpassed FY2011 whole year’s profit of US$26.6 million. EPS for FY12 is likely to be at least 8 cts(US) [or around 10 cts(S)]. This would translate into a forward PE of 4x at 40 cts – rather low for a non-S-chip growth stock.

I was also looking at Kreuz a month back and then dropped it from my radar screen. Should have bought it when it sank to 38!  Kicking myself when I saw its profit has shot up.!

Hi Observer 2 – Are you still holding this counter ?  I am still vested but disappointed with its share price though it has gone up 23% last yr and 15% this yr.  Even at present 46.5 cts, PE is only 4.6 basing on its annualized EPS. ( NAV 35 cts and ROE annualized 28.6 % ).  I think it has a strong mgt team with good execution skills.  Its 3rd party biz is also improving. Will see what happens after 4Q12 results. Just gotta be patient. My views only.

Hi, Relaxing – I still hold this stock although the performance of its share price has been very disappointing, up to now. I agree with you that one has got to be patient with this one. History has shown that so long as a company is managed well, profits are on the up trend and valuation is low (especially below 5x for non S-Chips), one will be rewarded sooner or later. This is certainly not as exciting as punting or trading speculative stocks where profits are quicker -- not for everybody. The harsh fact remains that most people make money in a bull market only to lose back a big portion, if not all of it, in a bear market. Each one must find his or her own competency or capability to do what he or she is good at, and most important of all, to be able to keep the profits made at the end of the day.

Moving up slowly like snail LOL

I was also looking at Kreuz a month back and then dropped it from my radar screen. Should have bought it when it sank to 38! Kicking myself when I saw its profit has shot up.!



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Coming with a new level of angst and depravity for The Mentalist Season 5 DVD