Wednesday, January 28, 2009

Dockwise

Dockwise Ltd.(OSE:DOCK)



"Dockwise Ltd. is the Bermuda domiciled/resident holding company of the Dockwise group. The Dockwise group of companies comprises four global operating companies that provide specialty services primarily in the heavy marine transport and the oil and gas services industries."

"Dockwise operates in 6 different market segments:
Offshore Structures: all fixed and mobile structures used for the production of Oil & Gas, i.e. jackets, modular topsides, floating production units, SPAR buoy’s, TLP’s and semi-submersible platforms. Drilling Rigs: this segment includes 2 sub segments: jack-up drilling rigs and semi-submersible drilling rigs. Military: all military related transports, i.e. submarines, mine sweepers/hunters, dry-docks, radar platforms and all associated logistics services as well as testing.
Cranes: all container terminal related heavy equipment such as: pre-assembled container cranes, rubber tired gantry cranes, etc. Port & Marine Infrastructure: this segment includes all equipment associated with building and operating of marine infrastructure, i.e. dredging equipment, floating cranes, grain elevators, power barges, transport barges, dry-docks and yard facilities, etc. Yachts: Transportation of luxury yachts."


Market Value:
1.086 billion NOK(~$159 million)

Revenue: 2007: $290.1 million(Heavy lift 86%, Yacht transport 14%) 2006: $252.0 million 2005: $208.3 million

EBITDA 2007: $104.53 million 2006: $101.8 million 2005: $89.3 million

Order Backlog: 30.09.2008 $412 million, 31.12.2007 $233 million

EPS: FY2007: $-0.43

Total Assets
(30/09/2008): $1,700 million

Total Liabilities: $1,700 million

Fleet: 14 semi-submersible open deck vessels, 3 Dock-type vessels,4 Yacht Carriers

Top Five Shareholders: INVESCO Asset Management Limited 6.3%,Franklin Templeton Investment Management Ltd.6.3%, ODIN Forvaltning AS 5.4%, Schroder Investment Management Ltd. 2.4%, Wellington Management Company LLP 1.9%

Dockwise was offloaded to the Oslo Stock Exchange by the British private equity group 3i and crude carrier Frontline in 2007. Like most public companies that have recently been in the hands of private equity Dockwise is loaded with debt. All the cash that the company generates is used to pay interest and reduce debt and there are currently no earnings to report.

With the increase in offshore oil exploration and production in the recent years and in the future the transportation of drilling vessels, production installations and large components will grow significantly. The risks of this business are very real and significant, example one and two.
In the end of September the company had a order backlog $412 million including contracts that will be executed in 2014. Great majority of the heavy transport contract are completed months or years prior to the actual transportation, which should provide visibility into the development of Dockwise's business.

Dockwise pr-video(Youtube)

Sunny days for breakbulk(from 2007)

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