Sembcorp Marine

US crude tumbles 2.7%, settling at $65.06, as the market braces for rise in OPEC output 

OPEC, Russia and other allies look poised to increase output in their meeting in Vienna, Austria on June 22-23.

Russian Energy Minister Alexander Novak said his country and Saudi Arabia supported a gradual increase in production after restricting output for 18 months.

U.S. light crude ended Friday's session down $1.83, or 2.7 percent, to $65.06. Benchmark Brent crude oil was down $2.46, or 3.2 percent, at $73.48 a barrel by 2:28 p.m. ET, after falling 80 cents on Thursday.

Both contracts hit 3½-year highs in May, but have since drifted lower as U.S. crude production has risen and as the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies look poised to increase output in their meeting in the Austrian capital on June 22-23. (cnbc.com)

TA wise, it is on a downtrend mode chart patterns.

Current price of $2.03 is trading below its 20, 50, 100 & 200 days moving average.

Short term wise, I think it may likely slide down to revisit 1.87 . Breaking down of 1.87 with high volume that may likely see further selling down pressure to head lower towards 1.78 with extension to 1.60 price level.

Looking through their 1Q2018 reuslt, Net profit is down 86% to $5.3m,.

NAV of $1.157.

EPS is down 86% to 0.25 cents versus 1.77 cents .

PE is rather high at current price of $2.03 that is a PE of 45.1x ( estimated full year PE of 4.5 cents).

I think The current price of $2.03 is running ahead of its financial fundamentals.

Dividend of 2 cents per annum.

Yield is rather low at 0.98%.

Not a call to buy or sell.

Please do your own due diligence.

Sembcorp Marine Ltd, an investment holding company, provides offshore and marine engineering solutions worldwide. 

The company engages in the turnkey design, engineering, procurement, construction, and commissioning of offshore newbuilding and conversions, FSOs, FPSOs, FDPSOs, FPUs, MOPUs, gas terminals, FLNGs, FSRUs, jack-ups, semi-submersibles, drill ships, SSP solutions, TLPs, and SPARs. It also engages in the repair, refurbishment, retrofitting, life-extension, upgrading, and conversion of vessels, marine and offshore structures, LNG and LPG gas carriers, cruise ships, ferries, mega-yachts, floating production vessels, MODUs, tankers, containers, and cargo ships, as well as offers jumboization and dejumboization solutions. In addition, the company offers afloat and emergency repair, underwater cleaning and repair, main engine maintenance and repair, steel and pipe work, electrical and instrumentation repair, mechanical and motor rewind repair, tank cleaning, sludge and oily waste disposal, staging work, hydro jetting and hydro/vacuum blasting, riding crew and voyage repair, specialized workshop repair and reconditioning, vessel towage and port clearance arrangement, specialists service and navigation, automation, safety, and fire protection services. Further, it offers offshore platform solutions, such as integrated process; production, riser, and drilling; wellhead, power generation, manifold, and accommodation platforms; and wind-farm substations, as well as topside modules fabrication, installation, and integration. Additionally, it designs and builds sophisticated, specialized, gas value chain, ferry, RoPax, cruise, renewable energy and offshore support, naval support and security, and research and scientific survey vessels. The company was formerly known as Jurong Shipyard Ltd and changed its name to Sembcorp Marine Ltd in 2000. The company was founded in 1963 and is headquartered in Singapore. Sembcorp Marine Ltd. is a subsidiary of Sembcorp Industries Ltd.