DOCK.N0000 (COLOMBO DOCKYARD PLC)

[yellow knife]

2017 was not a profitable year for the Ship Builder of Sri Lanka..

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For many companies Revenue is often growing. Yet for DOCK Revenue has reached a plateau and the company is struggling to not to fall from the high plateau..

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[yellow knife]

Company could slightly  over come the negative trend in EPS though the figure still appears in negatives.


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[yellow knife]

Market Value is well below Net Assets Value.

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[nihal123]

Thanks YK

[yellow knife]

Companies with higher net profit margins often declare good dividends. Therefore DOCK is not for dividend hunters.

Hydro power companies are in a position to declare better dividends.

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[spw19721]

Thanks YK for the analysis ...


As I remember once SLS has mentioned that the major revenue comes from ship repairing.not building ships.So crude oil price play an important role for their profit.



Quoted from CEO - Mr.D.V Abesinghes speech "

" Abeysinghe said oil prices must recover up to at least between US $ 60 to US $ 80 for a viable offshore oil and gas exploration and extraction. Although the outlook for 2017 is challenging as the global marine sector recession is expected to continue up to 2018, Abeysinghe is hopeful of securing a few shipbuilding projects this year while also strategically diversifying into other types of ships going beyond offshore support vessels market."

[yellow knife]

Thanks YK for the analysis ...


As I remember once SLS has mentioned that the major revenue comes from ship repairing.not building ships.So crude oil price play an important role for their profit.



Quoted from CEO - Mr.D.V Abesinghes speech "

" Abeysinghe said oil prices must recover up to at least between US $ 60 to US $ 80 for a viable offshore oil and gas exploration and extraction. Although the outlook for 2017 is challenging as the global marine sector recession is expected to continue up to 2018, Abeysinghe is hopeful of securing a few shipbuilding projects this year while also strategically diversifying into other types of ships going beyond offshore support vessels market."

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Column1	2017	2016
Ship Repairs	5,943.00	4,560.00
Ship Buildings	6,038.00	5,374.00
Heavy Engineering	71.00	39.00

[spw19721]

seems like both contributes around 50:50..

[yellow knife]

Yes...

To be exact

Description	2017	2016
Ship Repairs	49.31	45.72
Ship Buildings	50.10	53.89
Heavy Engineering	0.59	0.39
	100.00	100.00

[pjrngroup]

Thanks YK.

[slstock]

Saw this over the weekend.

Actually , what I said/meant was major earnings/profit margins ( not revenue)  for DOCK  come from ship repairing  ( not building) . The profit margin for repairing services is much higher than ship building. Ship building may bring bigger revenue when they have lot of orders, but profit margin is relatively less.


Even if you look at  March 2018 report ( which is not great as to be expected as explained last year) , you can see the fact  stated above on profit margins.

DOCK will recover in earnings when shipping business improves in the world .
Most part of world shipping business is related to  Oil in some way or the other.
With oil prices going up , there is possibility that starting later this year DOCK
might improve business.

But it a bit too early to say such. Let's watch.  

Thanks YK for the analysis ...


As I remember once SLS has mentioned that the major revenue comes from ship repairing.not building ships.So crude oil price play an important role for their profit.



Quoted from CEO - Mr.D.V Abesinghes speech "

" Abeysinghe said oil prices must recover up to at least between US $ 60 to US $ 80 for a viable offshore oil and gas exploration and extraction. Although the outlook for 2017 is challenging as the global marine sector recession is expected to continue up to 2018, Abeysinghe is hopeful of securing a few shipbuilding projects this year while also strategically diversifying into other types of ships going beyond offshore support vessels market."

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[size=15][b][size=15][b][size=15][b][size=15][b]Column1[/b][/size][/b][/size][/b][/size][/b][/size]	[size=15][b][size=15][b][size=15][b][size=15][b]2017[/b][/size][/b][/size][/b][/size][/b][/size]	[size=15][b][size=15][b][size=15][b][size=15][b]2016[/b][/size][/b][/size][/b][/size][/b][/size]
Ship Repairs	5,943.00	4,560.00
Ship Buildings	6,038.00	5,374.00
Heavy Engineering	71.00	39.00

[Ethical Trader]

Thanks SLS.

[Jana1]

I didn’t know a constructive discussion is going on here..

I suespect DOCK lower revenue is from change of accounting practice. It was made in the statement..

We can expect DOCK to remain profitable once offshore vessels business become vibrant once oil price hike to above 80.

They secured 3 ship building projects now. But looks like margin is quite low.. this is probably a slow collection time. Anyway looks too early as SL mentioned...

[yellow knife]

Thanks SLS and Jana

[spw19721]

Saw this over the weekend.

Actually , what I said/meant  was major earnings/profit margins ( not revenue)  for DOCK  come from ship repairing  ( not building) . The profit margin for repairing services is much higher than ship building. Ship building may bring bigger revenue when they have lot of orders, but profit margin is relatively less.


Even if you look at  March 2018 report ( which is not great as to be expected as explained last year) , you can see the fact  stated above on profit margins.

DOCK will recover in earnings when shipping business improves in the world .
Most part of world shipping business is related to  Oil in some way or the other.
With oil prices going up , there is possibility that starting later this year DOCK
might improve business.

But it a bit too early to say such. Let's watch.  




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[size=15][b][size=15][b][size=15][b][size=15][b][size=15][b][size=15][b][size=15][b][size=15][b]Column1[/b][/size][/b][/size][/b][/size][/b][/size][/b][/size][/b][/size][/b][/size][/b][/size]	[size=15][b][size=15][b][size=15][b][size=15][b][size=15][b][size=15][b][size=15][b][size=15][b]2017[/b][/size][/b][/size][/b][/size][/b][/size][/b][/size][/b][/size][/b][/size][/b][/size]	[size=15][b][size=15][b][size=15][b][size=15][b][size=15][b][size=15][b][size=15][b][size=15][b]2016[/b][/size][/b][/size][/b][/size][/b][/size][/b][/size][/b][/size][/b][/size][/b][/size]
Ship Repairs	5,943.00	4,560.00
Ship Buildings	6,038.00	5,374.00
Heavy Engineering	71.00	39.00

[/quote]





Thanks for the clarification  sir. I used the word revenue coz I admit I had no idea about differnces between earnings and revenue.

Anyway Dockyard is reaching towards 70 which is very tempting..