Plant Offshore Share Discussion Threads

[quintons] 15/7/2007 20:17

It will be interesting tommorrow, what happens, I am tossing between POGL and HAWK... unsure which will be the best to invest in.

Staying with POGL for now, will be very careful upon start of trading - espeshilly as I won't be able to look up the price until 8:40 at the earliest!

Good luck to all...

Quinton.

[stegrego] 14/7/2007 21:06

Quinton - it did only 'gain' £2 million - thats the amount of money they raised at the float.

The fact the share price has gone up and the company is now worth more, doesnt mean they have more money to spend or less debt - just that each share is worth more.

As for it going up, down or sideways - your guess is as good as anyones - and if they say different - they are lying.

[quintons] 14/7/2007 20:59

Question: this coming Monday I am looking to enter into this stock, but reservations I do have. firstly it's original IPO was £21.5m, it is now at just over £30m, it was only origanlly looking to float on AIM to gain £2.1m and yet allot more has been generated.

is this increase due to the fact of "potential" value from all the potential contracts put in for tender? or other factors, just simple excitment over this stock.

could it retract to a lower value? or will it continue... or be stable.

any thoughts with figures if possible would be appreciated.

Quinton.

[gelp] 14/7/2007 18:18

Thanks nouf...

[nouf2] 14/7/2007 14:50

Plant Offshore Group - an amazing start to life on AIM, which is a bit of a mystery to me!
Author: IC | Posted: @ 23:28
The meteoric rise in the share price of Plant Offshore Group (POGL) this week is a bit of a mystery to me. You could say it's sour grapes as I had an opportunity to participate in the IPO but didn't take it up-it was a valuation thing!

The group floated at 12p at the beginning the week and at the close today they were trading at c19p-quite a return! Volumes weren't great but it's the perception.

POGL originally wanted to raise £2.6m at a prospective Price Earnings ratio of approximately 12 times (2007 estimates), giving them an initial post-IPO market capitalisation of about £21.5m. It now stands at £32m so assuming the estimates remain as they were it stands on nearly 18x 2007 estimates and c15x 2008 estimates.

Perhaps I am missing something and further contracts have been nailed in the interim, however, they still have to deliver on these. The contract award is surely only a small part of the jigsaw, just ask Global Marine!

Despite this (and my sour grapes!) I'm still not sure why a Malaysian company, with Malay clients needs to come to AIM to raise a paltry £2.6m. But we do seem to see this time and time again.

The numbers look compelling but the suggested valuation just doesn't stack up for me as it is based on a huge step change in the business from 2005 to 2006. There are obviously some massive operational risks with regard to this and one should allow for the potential of a hiccup or two, especially with a small group who has never undertaken work of this magnitude.

The balance sheet at 31st December 2006 indicated shareholders funds of £2.77m, net current assets of £2.38m (including cash of £1.78m) and Long Term Liabilities of £580,000-well we aren't investing for balance sheet strength but it could be worse.

Net cash generated from operations in 2006 was £1.59m (vs Operating profit of c£0.8m) which appears a little too good to be true.

The peer group comparison for this £21m company (at least it was back then) was made against (amongst others) Abbot Group (Mkt cap c£670m), Expro International (Mkt cap c£1bn), Petrofac £1.6bn), John Wood Group (£1.6bn) and arrives at an average 2008 PER of 15.8x.

A more appropriate comparison would surely have been with AIM quoted (and UK based) Sovereign Oilfield Group (AIM:SOGP) Mkt cap c£25m and trading c13x 2008 estimates and UK based Chieftain Group (AIM:CFT) Mkt cap c£17m c13x 2008 estimates.

It's an exciting opportunity to get in at the start in a business that would appear to have a potentially thrilling future across 2 booming sectors. It has proved that it can deliver on minor projects and has successfully won big contracts on foreign soil in Quatar and Indonesia which is good going.

BUT

It's a Malaysian business that's a total unknown in the UK-RISK = Discount
Management are not known in the UK – RISK = Discount
There is a projected huge uplift in turnover in 2007-RISK = Discount
The major contract for 2007 is the largest of its kind for the group-RISK = Discount.
One major contract and one client dominates in 2007-RISK = Discount.
There is foreign exchange risk for the UK investor-RISK = Discount.
Peer group valuation comparison isn't comparable-RISK = Discount
Illiquid-RISK = Discount


Taking a prudent view on 2007 estimates one can cut back the profit c£1m. Given the huge step change I think one also has to look at what they have achieved to date.

Conjecture
So I was wrong-BIG time.

Significant Shareholders before Admission

Landace Holdings Sdn Bhd 60%

Titan Acres Sdn Bhd 40%


Significant Shareholders after Admission

Landace Holdings Sdn - 54%

Titan Acres Sdn Bhd - 36%

Global Trader Europe Ltd - 5%

10-07-2007: Former OilCorpunit lists on AIM
by Lee Wei Lian
Email us your feedback at [e-mail]


Yesterday saw oil and gas industry services provider Plant Offshore Group Ltd (POGL) list on the Alternative Investment Market (AIM) of the London Stock Exchange - the second Malaysian company to do so within three business days.

Pursuant to the listing, POGL placed out 16.67 million shares at 12 pence per share to raise about £2 million (RM13.87 million). The group has a paid-up capital of £16,666.67 comprising 166.67 million shares.

As at press time, POGL's share price was 13.5p, down from its early morning high of 14p.

The group engages in integrated engineering, procurement and construction management to oil and gas companies.

Its chief executive officer Hang Chin Juan, executive director Pey Chee Hian and non-executive director Goh Chin Yong collectively hold 90% of the company through their holdings in Landace Holdings Sdn Bhd and Titan Acres Sdn Bhd.

Cho Nam Sang, former independent non-executive director of OilCorp Bhd and now general manager of Konsortium Perikanan Nasional Bhd, is the chairman of the board.

It is registered in Jersey, Channel Islands. Its primary subsidiary is Plant & Offshore Technology Sdn Bhd (POT), which was formerly known as Tenaga Nazar (M) Sdn Bhd (TN).

TN was a formerly 100%-owned subsidiary of Oilcorp before the latter disposed of it for RM2 million cash in September 2004 to Techbest Engineering Sdn Bhd, now known as Plant & Offshore Corp Sdn Bhd (POC), another subsidiary of POGL.

For the first quarter of 2007, POC reported profit after tax of RM2.1 million on a turnover of RM10.6 million, representing a profit increase of 31.25% over the same period a year earlier.

In its admission document, POGL said it would focus on higher value EPCM (engineering, procurement and construction management) contracts such as the RM100 million EPCM job it signed with Century Corp Sdn Bhd.

It has secured a five-year agreement with Oilfab Sdn Bhd, one of only six fabricators for Petroliam Nasional Bhd (Petronas) in Malaysia.

POGL said while the majority of the group's contracts were still in Malaysia, it had won contracts in Qatar and Indonesia and supplied specialists contractors to Malaysia, Nigeria, Qatar, Thailand, China, Korea, Australia and Vietnam.

It was now tendering for further EPCM contracts worth in excess of RM374 million.

IMHO , if the tenders come off, this will fly, DYOR

[nouf2] 14/7/2007 14:41

Plant Offshore plans £22 million flotation
Malaysian oil and gas services provider Plant Offshore is preparing a £22 million AIM flotation, supported by a £2.6 million placing arranged by HB Corporate. The group provides Engineering, Procurement and Construction Management (EPCM) services within the oil and gas and renewable energy industries.

Plant Offshore, which also supplies specialist personnel, will use the funds, raised at a prospective P/E of 12, to expand its geographical reach and intensify its focus on the burgeoning renewable energy market in Southeast Asia. It also aims to boost its recurring revenues through strategic partnerships.

The company recently agreed its first full EPCM deal, worth £14.3 million over 18 months, and has tenders in place for further contracts worth £55 million.

At present, the bulk of Plant Offshore's business is in Malaysia, although it has also won contracts in Qatar and Indonesia and is presently supplying contractors to Nigeria, Thailand, China and Australia.

Not a lot of info out there, particulary like the figures quoted, trying to get info on the management, is going to take some digging, this could have the makings, of a sondex or hunting, lets hope so, definetly going to keep a watch on this one, i think when the PI`s wake up to this, this will fly. Nice web site, Only thing i am little unsure is the potential to deliver big contracts but the mangement has shown it can deliver so far, the up side is this has the potential to be big player as it is positioned to deliver. DYOR, the downside it could go the way of Global marine

[westmoreland lad] 13/7/2007 17:00

Misty-- nice one, good start for you. I invest v trade so will
at least wait around for the 4 bag.

Regards

[mistyblue2] 13/7/2007 16:37

i heard from a friend i dont know where but was quite enthusiastic about the prospects and tenders that are as good as in the bag . in at 13.5 looking for a investment over 5 yrs x7-10 add a good divie payer hopefully

[westmoreland lad] 13/7/2007 16:23

Hi Misty-- I was getting lonely here ! Don't know anything
about POG.l, need time to do some research. Clearly
someone likes them looking at todays rise. Be a good sign
if ROL's picked a few up, I'll ask.

Tipped where-- do you know ?

[mistyblue2] 13/7/2007 16:12

tipped i believe

[westmoreland lad] 13/7/2007 14:38

Robin-- 16th on the biggest % gainers board today--nice

Got an even better feeling re. the above ps

You watching ZOX, since the 360p was taken ?--he he he

[ppowerscourt] 13/7/2007 10:15

Steady does it!

Fabulous two engineering divisions on oil prospecting advise and implementation of necessities. The area of South East Asia is a hotbed for both on- and offshore petroleum exploration and production. The Saudi location seems the good place to be as many oil workers are sourced from the Malay Peninsula.

The single inland bio-crop plantation is a good start. My opinion is to give this company time and their results will not disappoint.

Cheers!

[westmoreland lad] 10/7/2007 12:56

Robin--thas merely a broker's thoughts that at 12p it was
discounted to it's peers and read ok. Due to this brokers
track record I always try to buy when he says go. Only in
for a few k so not life threatening.

Regards

ps-- got a good feeling about some of the stocks we
hold. This 2nd half year should be a serious earner !

[robin_of_loxley] 10/7/2007 12:28

No problem westie.

What are your thoughts on the prospects for this one, and over what time scale?

regards,

RoL
>>>>>>-------------------->

[westmoreland lad] 10/7/2007 12:26

Robin--Cheers. Got in at IPO price of 12p. Lets see.

[robin_of_loxley] 10/7/2007 12:03

Hi, fordtin asked me if I would set up a thread for this one, and I have obliged, I think he bought some in the IPO.

It has charts and background info.



regards, and no advice intended,

RoL
>>>>>--------------------->

[robin_of_loxley] 10/7/2007 12:01

Aim admission document:

[robin_of_loxley] 10/7/2007 11:56

Hi

I have been asked to set up this thread by fordtin. I will have a look at this, but dont as yet hold.

This holds my charts for my research, others can post here of they wish, but please be polite and respectful to other posters

regards, and no advice intended,

RoL
>>>>>>---------------------->

[ppowerscourt] 10/7/2007 01:24

166,666,667 less major institutional holgings of 158,333,333 is the free float.

Thanks for the thread, Simon. Interesting company in a sought after sector.