Mercator Lines SIngapore - Trading at 65% discount to NAV

TQ Mr Zen. Just took notice and a few questions come to mind : Does Mercator derive revenue mainly from spot rates or long-term charter rates? What is its gearing? Has its dividend payout been consistent?

Perhaps Rickmers Maritime is a better buy compared to Mercator (assuming anyone wants to buy into these 2).

Rickmers continues to pay a dividend. Yield is about 10% with the stock price at 28 sgd cents.

Mercator has not paid a dividend.

In terms of discount to NAV, Rickmers also trades at around 65% discount just like Mercator.

anyone has a different view?

sana wrote: TQ Mr Zen. Just took notice and a few questions come to mind : Does Mercator derive revenue mainly from spot rates or long-term charter rates? What is its gearing? Has its dividend payout been consistent?

you should go to the company's website to find out ..here's an extract for you .

We service primarily large thermal-based power plants and steel companies directly A substantial portion of our revenues are currently derived from long-term fixed rate contracts, specifically time charters and contracts of affreightment, or COAs, ranging from 11 months to twelve years. We believe that these fixed rate contracts provide us with relative stability in our revenues and cash flows. Depending on market conditions, we may deploy a portion of our fleet (up to approximately 30.0%) on the spot market. We believe that this will provide us with the flexibility to take advantage of periods of higher spot market pricing which may improve our profit margins. We currently focus on transportation of dry bulk commodities like Coal and Iron ore.

www.mllsg.com/index.html


Since listing in 2008 , Mercator had paid out dividend without fail except for this year only .



What really differentiate Rickers from Mercator is they operate in different market . Not much connections .

Rickmers - Container shipping
Mercator - Dry bulk shipping

Our parent company Mercator India (ML India) is one of the largest shipping companies in India. It has diversified business interests in Tankers, Offshore & Oil and Gas, Dredging and Coal logistics and mining.

ML India was incorporated in November 1983 under the laws of India as a private limited company and was converted into a public limited company in April 1984. In 1988, Mr. H.K. Mittal and his family acquired ML India. In 1993, ML India made an initial public offering of its shares which are now listed on the National Stock Exchange of India ( NSE) , and the Mumbai Stock Exchange (BSE)

ML India’s fleet comprises various types of vessels, including Very Large Crude Carriers, or VLCCs, Suezmaxes, Aframaxes, Product Carriers and Dredgers. ML India was the recipient of the Business Standard’s “Star Company of the Year, SME Sector” award in 2005.

one thing worth noting is the Baltic Dry index had jumped substantially since mar/june 2013 from a low of 750 to 1100+ now
that is a > 30% hike ........

It bodes well for dry bulk shipper like Mercator lines