SINWA LTD seems to be a small-cap stock that is recovering after a restructuring of its business which, as happens quite often, means discarding non-core businesses.

Sinwa is a long-time ship chandler whose stock price is up 58% in the year-to-date, from 10.2 cents to 16.1 cents.

The group's forays into ship chartering, ship repair, steelworks fabrication and heat exchanger repair have not worked out, and its stakes in these businesses have recently been divested or are in the process of being divested.

Sinwa suffered a net loss of S$5.8 million in FY2012.

Perhaps to make amends with its shareholders, Sinwa used the cash inflow from the divestments to pay a special dividend of 1.5 cent a share after its recent 1Q results (ended March 31).  

This was a hefty dividend return, in percentage terms, compared to the stock's trading range of 10.2-18 cents so far this year. 

sinwa_edge6.13Sinwa CEO Bruce Rann in the first page of 2 of a report in this week's edition of The Edge Singapore.Sinwa's 1Q2013 (ended March 31) results brought cheer too for investors.

Revenue increased by 6.3% year-on-year to $33.8 million, mainly from the marine supply and logistic business.

Profit for 1Q13 attributable to shareholders was $2.88 million compared to $0.69 million for 1Q12.

The increase is mainly due to foreign exchange gain of $0.8 million (compared to a foreign exchange loss of $1.2 million for 1Q12), a gain on disposal of subsidiaries of $0.1 million, lower depreciation charge as there was no depreciation for liftboat KS Titan 2 which was disposed in March 2013. These were offset by higher losses incurred from discontinued operations.

Sinwa is featured in this week's edition of The Edge Singapore (newsstand price: S$3.80).

Its CEO, Bruce William Rann, was quoted describing Sinwa's position in the industry thus: "The top five marine supply and logistics companies in Singapore do 65% of the business. And we are the largest."

He added that Sinwa is one of only two major players on the west coast of Australia.

Swissco_CheetahSwissco Cheetah: Capable of carrying 50 tonnes of deck cargo and 70 passengers.

SWISSCO HOLDINGS has secured contracts for its crew boats worth an aggregate of S$8.24 million.

The marine service provider for the shipping and offshore oil and gas industries took delivery of a new crew boat on 16 April 2013, the ‘Swissco Cheetah’, boosting the number of crew boats that it owns / manages to seven.

Cheetah was deployed two days later to Brunei for a 12-month period.

Swissco has also secured a 6-month extension for the 'Swissco Spear' in Malaysia and a minimum 90-day job for the ‘Swissco Spur’ in Brunei.
In addition, Swissco is scheduled to take delivery of another crew boat named ‘Swissco Puma’, which is expected to be completed in July 2013. The contract for Swissco Puma is currently under negotiation.

In view of the increased demand for crew boats, the Group has made plans to expand its fleet of vessels with 2 additional crew boats which are expected to be delivered in the first half of 2014.

“We are seeing heightened activity in the offshore marine sectors, particularly in the South East Asian countries as oil majors expand exploration and production programmes. We believe the demand is sustainable and have therefore negotiated with our preferred shipyard for the construction of more vessels. Together with our fleet expansion programme, we are striving to provide a comprehensive range of vessels for our customers, and to achieve a larger base of stable income,” said Robert Chua, Executive Chairman of Swissco.
The Group has 14 vessels under construction for the vessel chartering segment, 7 of which will join in 2H2013, and 6 in FY2014.

Recent article: SWISSCO: FY2012 net profit doubles to S$16.4 m

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