T.U.B Investing

I've been extremely busy with work over the last few months. As a result, I didn't realize it had been over 3 months since my last written update on this blog.  Despite that, I decided it was time for a follow up on a company I've been watching closely - Beng Kuang Marine ("BKM").  A lot has happened with their share price since my last write-up . It peaked at over $0.30 after being at $0.168 previously. Now it has pulled back to around $0.210. Beng Kuang Marine Share Price / Source: InvestingNote I distinctly recall the first time I covered BKM back when their share price was just $0.061! They've undoubtedly come a long way since. Most recently on 5 Aug 24, BKM announced their half-year financial results. Beng Kuang Marine Income Statement While the results were impressive, the profit margins alone do not fully capture the significance. Even removing the $5.5 million one-time gain from disposing of the Batam shipyard, BKM remained profitable. This highlights...

Not Vested Since my last write up , Beng Kuang Marine (BKM) has seen a remarkable surge in its share price, soaring from 6.7 cents to 16.5 cents as of today. Additionally, the company has attracted a new institutional investor , which is known for delivering impressive returns. The arrival of this investor suggests that something positive is happening within the company, making it more appealing to potential shareholders. Ginko-AGT Global Growth Fund Returns. Source: AGT Website If you’ve been following my earlier analysis of BKM, you’ve likely benefited from the recent surge in share price. However, it’s crucial to assess whether this upward trend is sustainable. To do so, we need to delve into the company’s fundamentals. After all, I believe the share price surge was driven by BKM’s successful turnaround in FY2023. It’s essential to determine if the underlying fundamentals will continue to improve.  If you're pressed for time , the bottom line is a definite "Yes."  He...

Not Vested. Considering. In my previous blog posts, I mentioned Beng Kuang Marine (BKM) a few times. I initially held a position in the company but divested when its share price increased significantly, as it was only a small portion of my portfolio. Based on my recent review of my portfolio strategy, I am not planning to reinvest in BKM unless it is solely for a separate trade outside of my portfolio. The current circumstances seem to indicate a potential opportunity has arrived. To summarize the situation: BKM has achieved profitability based on its Q3 FY23 results. This suggests that it is highly unlikely for FY23 to be a year of losses for the company.  Source: BKM 3Q & 9m2023 Corporate Highlights Furthermore, BKM has successfully completed the disposal of its tugboats and has received the remaining S$460k in cash. This means that the company's financial results will no longer be negatively impacted by this unprofitable segment of its business In addition, BKM has collect...

Still Vested I have previously covered Beng Kuang Marine in several articles, and I'm excited to share the latest update on their financials. On August 11, 2023, the company released its six-month financial report, highlighting two crucial points: (1) Remarkably, the company has achieved a turnaround and generated a profit without relying on gains from shipyard sales. This outcome exceeded my expectations. The thriving FPSO and FSO market during the period of high oil prices, surpassing $100 per barrel, undoubtedly contributed to this success. Source: HY2023 Financials As quoted from the press release, "The Group’s IE continues to be its core revenue generator with revenue growth of 7.5% in 1H2023, with its 51%-owned subsidiary, Asian Sealand Offshore and Marine Pte Ltd (“ASOM”), being the main revenue contributor of IE’s 1H2023 sales as a result of increased business volume from higher demand for FPSO and FSO contracting services...ASOM has diversified its geographical sco...

Vested. I have previously written about Beng Kuang Marine (BKM) on two occasions. Following my February 2023 article , I stated that the industry outlook would be favorable for BKM. Subsequently BKM's share price rose from $0.049 to $0.072, a gain of 46%. BKM Share Price. Source: Yahoo Finance I also wrote a series of tweets on my Twitter account (follow me!) about oil prices, which I believe will remain at least flat until December 2024. This will further benefit BKM's business as more FPSOs will be brought to them for maintenance. However, after the article, the full year results were released and showed significant losses from operations. Equity fell from $18 million to $4 million. The current ratio was less than 1. BKM FY2022 Income Statement BKM FY2022 Balance Sheet But if we focus on the positives, net cash from operations was actually positive. Liabilities reduced, especially borrowings. And revenue increased. BKM FY2022 Cashflow Statement On April 12, 2023, BKM sold...

Still Not Vested In my previous article , I have discussed Beng Kuang Marine, a company that offers maintenance services for Floating Production Storage and Offloading (FPSO) vessels used in offshore oil production. According to Rystad Energy , an energy consultancy, offshore oil production sites are generally more expensive to build than onshore shale sites. However, once established, offshore sites can generate profits at lower prices compared to other forms of production. The average break-even price for producing offshore projects is $18.10 per barrel of oil equivalent, which is lower than the $28.20 per barrel break-even price for onshore production. While some sources on the internet suggest that the cost of offshore oil production could rise to as much as $50 per barrel, many operators are still ordering new FPSO vessels.  Source: Offshore Magazine In 2022, there were as many as 30 new FPSO orders, despite the fact that there are already 179 operating and available FPSO ves...

Not Vested in Dyna-Mac and BEZ at time of writing. Since April 25th, the share price of Dyna-Mac has increased by about 100%. According to the article , this is most likely a record high net book order of S$641.1 million for floating production, storage, and offloading vessel topsides modules (FPSO), with deliveries extending through 2024. Share Price of Dyna-Mac This is related to the oil supply scarcity > resulting to an increase in oil prices > increasing the demand for oil exploration/storage/transportation > leading to higher demand for FPSO. This prompted me to conduct research on the FPSO industry, which led me to Beng Kuang Marine (BEZ) , whose share price has been declining instead. This made me wonder if this is an opportunity? Share price of Beng Kuang Marine BEZ Latest Press Release As quoted from the latest press release, BEZ has four key business divisions as follows: 1. Infrastructure Engineering (“IE”) –Providing a spectrum of turnkey engineering services from...