Three Companies Benefiting from the Growth of Singapore’s Ship- And Rig-building Activities By James Yeo

Singapore is one of the busiest ports in the world, with the shipping and maritime industry playing a crucial role in our country’s economy. Having evolved from a small regional ship repair and building centre, Singapore has transformed its shipping industry into one that is globally renowned for its reliable and convenient range of comprehensive marine services.
While many individual investors would likely be familiar with the heavyweights in the shipping and marine industry, such as Keppel Corporation (SGX: BN4) and Sembcorp Marine (SGX: S51), there are many other important but smaller players within the industry that sails beneath the radar.
The marine-support sector has progressed in line with the growth of ship repair, shipbuilding and rig-building activities. Players within the sector range from small to medium-sized workshops, to comprehensive factory facilities across many disciplines that can even include telecommunication services.
Here are three companies in the marine-support sector.
SBI Offshore (SGX: 5PL)
Established in 1996, SBI Offshore is involved in supplying drilling, marine, life-saving and related equipment to the offshore and marine industry. Besides that, the firm also provides customised offshore engineering and equipment solutions from their manufacturing facilities in China.
In a nutshell, SBI offshore markets equipment to offshore oil rig builders. Such equipment include lifeboats, high pressure pipes, fittings, offshore drilling equipment and heating, ventilation, and air conditioning equipment. Its marketing and distribution network has a geographic reach that stretches across countries in Asia, Middle East and the Americas.
SBI Offshore last traded at S$0.117 and has fluctuated within the price range of S$0.10 to S$0.13 over the past year. It’s currently valued at 13.3 times earnings and sports a dividend yield of 1.7%.
KS Energy (SGX: 578)
KS Energy acts as an integrated one-stop energy services provider to the global oil & gas and petrochemical industries. With a headcount of 1,200 employees across 10 countries, the company’s core activities revolves around the distribution of parts and components, capital equipment charter, and the provision of drilling and rig management services.
For its distribution business, KS Energy is one of the leading distributors of oil and gas equipment, spare parts, consumables and industrial products in the region. All told, the company distributes more than 60,000 such products from over 300 international brands.
KS Energy is currently trading at S$0.44 per share, commanding a super elevated trailing P/E ratio of more than 9,000. This is due to the company’s poor performance for the last quarter of 2013 where profits came in negative. As a result, no dividends were paid as well.
CH Offshore (SGX: C13)
The company owns and operates vessels to support and service the offshore oil and gas industry mainly in its primary markets of Indonesia, Malaysia and Thailand. Presently, the group owns a fleet of 21 Anchor-handling Tug/Supply (AHTS) vessels that provide a range of services:

1) Offshore construction support

2) Support services to offshore drilling rigs and installations that include towing, anchor-handling, supply of deck, liquid and dry bulk cargoes, and supply of dangerous goods etc

3) Field support services that include emergency response, rescue, fire-fighting, anti-pollution etc.

With 30 years of experience in offshore support services, CH Offshore has an excellent relationship with many oil and gas clients including industry giants like CNOOC, Exxon Mobil, Shell, Chevron, Petronas and more.
CH Offshore currently trades at S$0.41 with no P/E ratio to speak of as it had made losses over the past 12 months due to a poor showing for the quarter ended 30 June 2013. Nonetheless, it did declare a dividend of S$0.005 per share in its latest earnings release for the six months ended 31 Dec 2013 as it managed to make a profit of US$14.1 million.
Foolish Bottom-line
According to the Industrial Classification Benchmark (ICB), there are 26 shares classified under the subsector of Oil Services & Equipment. Because of that, retail investors who are optimistic on the resurgence of the oil and gas industry can really be spoilt for choice, considering that are many other subsectors related to the entire oil and gas industry.

Oil & Gas Thailand 2014 And Petrochemical Asia 2014 Event information

Oil & Gas Thailand 2014 And Petrochemical Asia 2014
Date: 2 - 4 September 2014
Time: 10.00 am to 17.00 pm
Venue: BITEC, Bangkok, Thailand

The mega petroleum expo featuring: The 4th edition of Oil & Gas Thailand (OGET) 2014 and Petrochemical Asia 2014 is the only specialized oil & gas technology and petrochemical technology event in Thailand that brings together an international congregation of both upstream and downstream oil & gas and petrochemical companies and also its supporting industries gathered in the capital city of Bangkok, Thailand to showcase the latest developments in the oil and gas and petrochemical industry.

Canadoil's founders Sozzi files enough claims to potentially overwhelm all other creditors; receiver to disclose today who will be planner by Chaim Estulin

Canadoil's founder files enough claims to potentially overwhelm all other creditors; receiver to disclose today who will be planner

The official receiver of Canadoil Group’s former two main entities in Thailand is set to disclose today whether about USD 1.5bn claims from parties related to founder Giacomo Sozzi are valid, a determination that could give him control over the process, said four sources familiar with the situation. In total, about USD 2.5bn of claims were filed last month against specialty-pipe maker Canadoil’s two main Thai OpCos, Canadoil Pipe (CPIPE) andCanadoil Asia (CASIA), as part of their court-overseen restructuring process, the four sources said. Along with filing their claims, creditors voted on one of two candidates to be the two entities’ planner -- as the administrator is called in Thailand -- they said. The receiver’s decision on the claims will go a long way in determining whether the planner is Sozzi’s nominee or a rival proposed by a group of holders of a USD 150m Credit Suisse-arranged private placement facility, who late last year seized control over the two OpCos, said the four sources familiar and a fifth source familiar. While any plan would ultimately need to be approved by a majority by value of the creditors, the planner can direct the process in a way that favors one side or the other, said three of the sources familiar. A gaggle of banks with domestic loans could be a wildcard, said the first three sources familiar and the fifth source familiar. Before the voting process began, the banks met to try to coalesce around a single candidate, but failed to confirm a united choice because the decision rested with higher ups, said the fifth source familiar. The decision was probably complicated by Sozzi having a relationship with some of the bankers but not necessarily with the higher ups, said one of the three sources familiar and the fifth source familiar. Following the determination of the claims and the winning planner, the receiver has a week to present the results to a court for approval, after which the winner has five months to prepare a plan, said the second source familiar. At numerous stages, creditors can file objections, including against rival claims, significantly delaying the process, said the first three sources familiar. “By [tomorrow’s meeting], the mud will not be as thick,” said the second source familiar. “I’m not sure you will have clarity.” Sozzi, an Italian-Canadian, did not respond for comment. Making it count Some of the largest claims filed were from numerous entities related to Sozzi, including one seeking the total equivalent of USD 769m in compensation for CPIPE's and CASIA's use of the Canadoil name, said the first two sources familiar. Against CPIPE --- producer of pipes with a diameter of 4”-100” and corrosion-resistant alloy clad pipes -- there were a total THB 58bn (USD 1.79bn) in claims, said the first and fourth sources familiar. Of that, about THB 18bn (USD 556m) was for use of the Canadoil name, said the first two sources familiar. Another about THB 18bn was for the termination of an exclusive distribution agreement with Dubai-based Canadoil Group FZCO, said the first source familiar. FZCO is listed as a sales office on Canadoil Group’s website, which also still counts CPIPE and CASIA as manufacturing facilities. The largest bank creditors to CPIPE are Siam Commercial Bank, with THB 5.2bn (USD 160m) of claims, and Standard Chartered Bank’s Thailand arm, with THB 1.4bn (USD 43m), the first source familiar said. There was a total of about THB 23bn (USD 710m) claimed against butt-weld fittings maker CASIA, according to the first and fourth sources familiar. Of that THB 6.9bn (USD 213m) was for the name and THB 2.9bn (USD 89m) was for the breach of FZCO's exclusive distribution rights, said the first source familiar. The largest other claim against CASIA was for THB 8.9bn (USD 275m) from domestic lender Thai Military Bank, he said. Each member of the Credit Suisse group filed their full share of a total THB 4.6bn (USD 142m) in claims independently against both entities, said the first source familiar. As reported, the Credit Suisse group’s claims against the CPIPE and CASIA are based on guarantees the two entities provided to back the USD 150m loan to their offshore parent. Credit Suisse itself also filed about THB 2bn (USD 62m) claims against CASIA related to a bilateral loan, said the first source familiar. As reported, Sozzi wants a member of Thai workout firm Treasury Specialty appointed as planner while the Credit Suisse-group-controlled OpCos have nominated George Kelakos, an American bankruptcy attorney who is currently the sole director of the two OpCos, as reported. As effective indirect shareholders of the two OpCos, the Credit Suisse group has a much stronger voice than other creditors in choosing the planner, as reported. Under Thailand's bankruptcy law, the group would only need the support of 33% of the creditors by value for its nominee to win, while Treasury Specialty would need more than two thirds. While Thailand's rules give the Credit Suisse group the upper hand in choosing the planner, ultimately, any restructuring proposal he comes up with would need to be approved by at least 75% by value of one creditor class, and then a majority of all classes, said the second source familiar. Taking turns At least for now, the Credit Suisse group has managed to turn the tables on Sozzi. As reported, while he still controlled CPIPE and CASIA, Sozzi tried in early 2012 to have a court put the two entities into the rehabilitation process, for which he nominated himself as the planner. Concerned the skewed voting process might allow him to win the nomination, bank creditors and the Credit Suisse group variously objected to Sozzi’s plea for rehabilitation and after a yearlong battle, the court threw out his case. In January this year, a court finally agreed to put CPIPE and CASIA into rehabilitation, in response to new petitions filed by Sozzi late last year, before he was deposed, as reported. A company in Thailand can only be put into rehabilitation if it is deemed insolvent, a status the court overseeing the 2012 cases ruled did not apply to the two OpCos at that time. As reported, the company fell into default shortly after drawing down USD 150m of the Credit Suisse-arranged USD 250m facility in early 2011. In early 2012, the creditors of the facility put the ultimate holdco, Luxemburg-registered Finspace S.A., into receivership, and took control over intermediate holdco, Spain-registeredGlobalspace Energy Investments S.A., which was the borrower. Finspace, CPIPE and CASIA provided guarantees. As reported, by taking control over Globalspace, the Credit Suisse group -- after facing numerous regulatory hurdles -- were finally able late last year to drill down and appoint their own director in Thailand over CPIPE and CASIA and then install their own management team. The two entities are being run by Teak Capital Corp’s Lampros Vassiliou, a former lawyer and long-time Asia restructuring specialist, who had been circling the company since it defaulted in mid-2011. The Credit Suisse transaction was at least the fifth private-placement financing raised by Canadoil in as many years to build up its operations in Thailand. While the family-owned Canadoil has had decades of pipe-making experience in Italy and Canada, it only commenced production in lower-cost Thailand in 2007 -- initially funded largely with a USD 82m private loan anchored by a Citadel Investment Group fund, as reported. Already by December 2009, it was bringing onstream its third pipe production line in the Southeast Asian country, raising per annum capacity by 200k tons, to 850k tons, according to the teaser for the Credit Suisse loan, as reported.  by Chaim Estulin