knife catcher schreef op 13 oktober 2015 13:09:
SBM Offshore: The Spark That Will Light Up The Oil
Introduction: SBM Offshore (OTCPK:SBFFF) is an industry leader in the FPSO market, a segment of the offshore services sector. Your instinct and previous experiences with offshore players, like Seadrill (SDRL) and Transocean (RIG), are now alarming you to stop reading and classify this as another 'oily' value trap. Before you stop reading, I want you to rest assure that this case study is a completely different story as the bull case does not assume a recovery of the oil price over the next few years. SBM's ADR shares are traded on the OTC market; however, its shares traded on the Amsterdam stock exchange offer much more liquidity and are preferable.
Company profile: SBM's main activities are the design, supply, installation and operation of FPSOs (Floating Production, Storage and Offloading vessels), which are either owned and operated by SBM or supplied on a turnkey sale basis. The company divides its activities in two large divisions:
1.Turnkey business: All construction activities are concentrated under this division. It designs and sells FPSOs or structural components of FPSOs such as turrets (mooring systems). All constructed FPSO vessels are converted oil tankers (VLCCs).
2.Lease and operate: The operational activities (bringing oil to the surface) are concentrated under this division. The FPSO vessels in operation remain property of SBM and are being leased. In this way, the field owners do not have to take these assets onto their balance sheet.
Why the FPSO market is not comparable with the offshore… Read More …
SBM is undervalued on a DCF basis: I calculated a 28% upside from my DCF model valuing the stock at $19.2 (or €16.9) per share. It should be noted that this model only accounts for existing backlog. This backlog is not dependent on oil price nor is it sensitive to production volumes. The valuation is derived using a discount rate of 12%. On the graph below, you can find the model with assumptions
seekingalpha.com/article/3564456-sbm-...even de link volgen; stuk is veel langer
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