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28 Jun, 2001
Thedoors, you asked:
Your biggest "competitor", SGX-wise, is NOL, which trades at a FY01 PER of about 8x based on an eps of 14.5 cents (consensus:21 cents).
Q: Why would anyone be willing to pay Samudera a P/E of 5.6x against an uncertain growth background, when a major player like NOL can be got fairly cheaply too?
Our answer:
Even though we are also a shipping company like NOL, our market exposures and risks are different. We never try to enter main shipping routes. There are keen and severe competitions among big players for such main routes. We always try to find market niche that gives us more stable and healthier business environment. In addition, being a smaller company, we have the flexibility to adapt quickly with the changing market condition as well as we have a lot of room for growth.
Thank you for your questions.
By Samudera
On Thursday, 28 Jun 2001 02:46pm
Posting #220
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Hi Thedoors,
you asked:
NOL is floating its tranker division, AET on Nasdaq. Market reckons that valuations for AET are not that compelling. AET's is being offered at Price/Book of 1.1-1.2x; and on PE valuations of 6-6.6x.Q: Samudera has built its own (products) tanker division, which has 'consumed' lots of capex. Has this been beneficial and eps accreditive? Any plans to spin off these assets into another vehicle?
Our answer:
Actually, the performance has been good, on operating profit basis. However, on net profit basis, the performance has been affected by forex loss resulting from depreciating S $ against US $. However, such forex losses have merely been accounting losses without any impact on the cash flow. Moreover, due to delays in delivery of our two product tankers we could not realize the benefit so far. However, with the delivery of the 2nd tanker in the beginning of this year, we expect to realize the benefit of the investments from now on.
Our main intention to have tanker business is to have a business that gives us higher margins and more stable financial returns than container shipping. Therefore, we do not have plan to spin off our tanker ships since we believe they will give a positive contribution to the company in future. However, we do not completely rule out such possibilities in future.
Thanks once again for your questions.
By Samudera
On Thursday, 28 Jun 2001 02:50pm
Posting #221
Hi Fabia, you asked:
Mr Effendi,
Thanks for your time in answering qns...I am not a follower of your company but have taken notice of you since you are doing this forum discussion with us....
Just one qn: From the financial highlight as found here in SI....
http://www.samudera.listedcompany.com/highlights.html
Your foreign exchange saw some big movements from a loss of $566,000 in 99 to a gain of $856,000 in 2000. Not a big sum but as a Indonesian linked company, I reckon you must have huge exposure to forex risk like the rupiah & USD & of course SGD....
QN:
1. What is the currency of transaction in your bizness and
2. How are you hedged against the fx risks.
3. Do you have a big treasury team?
4. Does your treasury team take posns for the company?
5. What is your historical biggest loss made in a FY for forex?
Our answer:
1) Almost all of our revenues are in US$, and we don’t have revenues in Rupiah. Majority of our expenses are in US$ and S$. Most of the foreign exchange losses that were shown in our financial reports are accounting losses. By the end of each financial period, the balance sheet items (such as cash, bank balance, account receivable, account payable and loan) have to be recorded in S$ as our accounting is in S$. When the US$ asset items amount is less than the US$ liability items amount, fx loss will happen, and vice versa. This fx gain/loss does not affect cash flow.
2) We will hedge our S$ transaction if S$ starts strengthening significantly against US$.
3) We do not have a big treasury team as our exposure is small and limited to only few currencies.
4) The treasury team does not take position for the Company.
5) The biggest foreign exchange loss we had was in 1997 when the economic turmoil started, and S$ weakened against US$ from 1.42 to 1.68. The loss at that time came to almost S$4.3 million, and then a further sum of almost S$1.3 million in 1998
Thanks very much for your questions, Fabia.
By Samudera
On Thursday, 28 Jun 2001 02:59pm
Posting #222
NOL is floating its tranker division, AET on Nasdaq. Market reckons that valuations for AET are not that compelling. AET's is being offered at Price/Book of 1.1-1.2x; and on PE valuations of 6-6.6x.Q: Samudera has built its own (products) tanker division, which has 'consumed' lots of capex. Has this been beneficial and eps accreditive? Any plans to spin off these assets into another vehicle?
Our answer:
Actually, the performance has been good, on operating profit basis. However, on net profit basis, the performance has been affected by forex loss resulting from depreciating S $ against US $. However, such forex losses have merely been accounting losses without any impact on the cash flow. Moreover, due to delays in delivery of our two product tankers we could not realize the benefit so far. However, with the delivery of the 2nd tanker in the beginning of this year, we expect to realize the benefit of the investments from now on.
Our main intention to have tanker business is to have a business that gives us higher margins and more stable financial returns than container shipping. Therefore, we do not have plan to spin off our tanker ships since we believe they will give a positive contribution to the company in future. However, we do not completely rule out such possibilities in future.
Thanks once again for your questions.
By Samudera
On Thursday, 28 Jun 2001 02:50pm
Posting #221
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Hi Fabia, you asked:
Mr Effendi,
Thanks for your time in answering qns...I am not a follower of your company but have taken notice of you since you are doing this forum discussion with us....
Just one qn: From the financial highlight as found here in SI....
http://www.samudera.listedcompany.com/highlights.html
Your foreign exchange saw some big movements from a loss of $566,000 in 99 to a gain of $856,000 in 2000. Not a big sum but as a Indonesian linked company, I reckon you must have huge exposure to forex risk like the rupiah & USD & of course SGD....
QN:
1. What is the currency of transaction in your bizness and
2. How are you hedged against the fx risks.
3. Do you have a big treasury team?
4. Does your treasury team take posns for the company?
5. What is your historical biggest loss made in a FY for forex?
Our answer:
1) Almost all of our revenues are in US$, and we don’t have revenues in Rupiah. Majority of our expenses are in US$ and S$. Most of the foreign exchange losses that were shown in our financial reports are accounting losses. By the end of each financial period, the balance sheet items (such as cash, bank balance, account receivable, account payable and loan) have to be recorded in S$ as our accounting is in S$. When the US$ asset items amount is less than the US$ liability items amount, fx loss will happen, and vice versa. This fx gain/loss does not affect cash flow.
2) We will hedge our S$ transaction if S$ starts strengthening significantly against US$.
3) We do not have a big treasury team as our exposure is small and limited to only few currencies.
4) The treasury team does not take position for the Company.
5) The biggest foreign exchange loss we had was in 1997 when the economic turmoil started, and S$ weakened against US$ from 1.42 to 1.68. The loss at that time came to almost S$4.3 million, and then a further sum of almost S$1.3 million in 1998
Thanks very much for your questions, Fabia.
By Samudera
On Thursday, 28 Jun 2001 02:59pm
Posting #222
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Hi Dimpy, you asked:
When one considers the region, the current political and economic situation in Indonesia is one of the biggest concerns for investors here. What is the proportion of business in Indonesia for Samudera and how do you think the situation affects you in the short to medium term?
Thank you
Our answer:
Currently, 52 % of our container volume is Indonesia related. For this year the total container throughput is similar to previous year, hence we do not anticipate significant change. All revenues of our Indonesian related business is US$ denominated and hence we do not have currency risk. Moreover, majority of our customers are major international shipping companies and therefore we do not have collection risk.
By Samudera
On Thursday, 28 Jun 2001 03:06pm
Posting #223
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