i am surprise those mark themselves as shark and said raise 3 sen can earn few million one not even know how to read QR report.. Like this also can survive. Haha... is them so lucky or just talk cock sing song all the while.. Just wondering.
Do you know why there is a need for impairment? It is because the FUTURE economic benefit that is expected to flow from the assets has been reduced. Have you seen how the calculation looks like? There is a projected discounted cash flow prepared based on certain assumptions and should be checked by the auditor. It is through these assumptions where judgment is exercised (or abused). If things will improve, there should be reversal of impairment.
I am sure the employees in umwog can predict the future of the company better than anyone of us in coming up with the DCF calculation. They have a business development team that talks to oil companies regularly on new drilling projects. And I am sure they want to show the best possible financial position for good bonus. And the best they can come up with is higher impairment although FY17 has improved. Someone should ask during the AGM the assumptions they use in the DCF calculation for supporting the impairment amount.
RM25m is not a lot of profit when the interest starts to move or any of the rig starts to idle. There will be idling period when transiting from old to new contract. There will also be idling period when a rig goes for dry dock.
And please don't worry so much about this company's cash flow. The banks are a lot more worried than anyone of us here and have measures in place to ensure the company can repay their loan.
US drop 300point, QR out drop..... sell sell sell for panic sell.... other people buy buy buy.... this was happen today.... closing 0.32...just 1cent drop... steady laa
Agree, just wait and see. If you really want to try your luck, better don't commit more than 10% of your investable fund in this counter. But then, if you really think this counter can reach 2.80 or 4.40 again, no harm wait first and sacrifice a little bit of profit for more certainty.
this stock will goreng till your money gone, the more you top buy, more bank untung end of the day bank brokerage money can buy you a superbike,,,hahaha
We attended UMWOG’s analyst briefing and walked away feeling positive. Key highlights as below: The company incurred RM982m asset impairment loss in 4Q17 due to change in daily charter rate (DCR) assumption and WACC. The reasons for change in assumptions are due to slower than expected recovery in DCR and change in capital structure of the company post rights issue. YTD rig utilisation rates have improved from 21% in FY16 to 70% in FY17 on the back of stabilization of crude oil prices due to OPEC production cut. However we expect that rig utilisation rates will fall to c.60% in 1Q18 as Naga 2 is warm stacked and Naga 4 is undergoing Special Periodical Survey and will only start its contract from 2Q18 onwards. Nevertheless, we understand that management is targeting rig utilisation rates in FY18 to at least match the level in FY17. More than 50% of the global rig fleet are aged more than 30 years, indicating that significant number of rigs could be scrapped in the longer run and provide significant boast to the DCR. For 2018, we understand that at least 12 jack-up rig contracts are available for tender in Malaysia. This is positive for UMWOG as being one of the only two local players in the industry, the company stands a fairly good chance to secure sufficient amount of contracts to replenish its order book. At this juncture, the group is participating in 33 rig contract bids (of which 21 is in Malaysia) worth a total of US$812m, indicating potential winning of more rig contracts by the group.
We heard all these before. Statements like "profitable if utilization is x%" or "we are going to Middle East". Don't you think they are frying a pile of cold rice here.
DCR was actually higher, if not the same, between FY17 and FY16. So how can the impairment is higher? As Warren Buffett said, "Honesty is a very expensive gift, Don't expect it from cheap people."
The management cares only for themselves, not for shareholders. After getting the right issue money, the first thing they do is to have a salary increase, everyone 6% or more. Then almost all senior staff got promotion, Mgr to Senior Mgr; Senior Mgr to GM; GM to Senior GM; Senior GM to Director level, which comes with a much bigger pay jump. I got this info from an inside staff.
how come they will get increment UMWOG profit lost maa, if just from share they also have un paid salary in coming month bcoz people's dun buy their share anymore..
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
KEYBOARD
267 posts
Posted by KEYBOARD > 2018-02-28 10:26 | Report Abuse
why didn't drop