Shipyards & Oil Services - Dyna-Mac Profit warning; Lundin sees Norway's rig rates down 50% from highs

Singapore/Malaysia Offshore & Marine News 
Dyna-Mac Holdings issues profit warning for 2Q. Based on the preliminary review of the unaudited financial results for the period ended 30 June 2015, the board of directors of Dyna-Mac has reported that they expect to report a net loss for 2Q15 and cumulative loss for 1H15. The expected loss was mainly attributable to low revenue achieved due to delay in receiving engineering drawings and free-issued materials from their current customers coupled with fixed direct and indirect overheads carried by idle capacities in their yards. They commented however that their net order book after closing 1H15 remains healthy at S$293mn. They expect to announce their 2Q15 results on or before 14 August 2015. (Company, Aug 5)

Ezion announced that they have issued the S$120 mn 3.65% committed funding backed notes due 2020 under its S$1.5 bn multicurrency debt issuance programme. This refers to its announcement dated 29 July 2015. The notes are expected to be listed on the SGX-ST on 6 August 2015. The net proceeds are expected to be used for general corporate purposes, including the refinancing of existing borrowings and financing of investments and general working capital of the Issuer or its subsidiaries. (Company, Aug 5)

Yangzijiang Shipping’s 2Q earnings fall 17% to $229 million (RMB1.03bn). Yangzijiang reports a fall in profits mainly attributed to the steep fall in profit margins from 24% to 15%; higher proportion of the revenue recognized during the quarter was from vessels with lower profit margin contracted in recent years. As of June 30, the company’s order book stands at US$4.14billion comprising 102 vessels. Amidst challenging industry conditions and negative dry bulk shipping demand outlook, the company expects to keep its yard facilities highly utilized until mid-2017. (Bloomberg, Aug 5)

Swiber nets $80m LatAm deal. Swiber has signed a deal with an undisclosed contractor for pipeline installation work worth $80 million. Swiber has handed its letter of intent with the global player. Installation work is set to begin this quarter and will boost Swiber’s order book to around $1.9 billion. (Upstream, Aug 4)

Marco Polo Marine 9M15 revenue decreased 12.2% y/y and 3Q15 revenue decreased 17.1% y/y due to decrease in revenue from its ship chartering operations which more than offset the increase reported in its ship building and repair operations. The decrease in ship chartering was due to the deconsolidation of the results of BBR following the deemed disposal, lower utilization of tugboat and barge fleet due to continued weakened shipping demand in the regional market for coal shipment and other commodities. (Company, Aug 5)

Alam Maritim wins RM40.7mn charter contract. The contract was to charter out MV Setia Emas to Allianz Middle East Ship Management LLC for RM40.7mn for “3+2” years. (Bloomberg, Aug 4) (Read Report)

Source : JP Morgan Asia Pacific Equity Research

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