Closer Look At Sembcorp Industries Now

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Monthly chart shows a break down from its trend line. 61.8% fibo support at 4.53. Subsequent support levels are shown accordingly. 52 weeks low coincidentally also at 4.53.

I posted an article a few weeks back (here) on my view on a few filtered out blue chips. The banks have since surged dramatically, leaving the offshore counters(KepCorp and Sembcorp) behind. Market seems to be treating them harshly with the plummeting of oil prices. Lets take a look at Sembcorp's latest quarter result so that you can judge for yourself.

Collated using Shareinvestor

Company has been doing share buy backs since mid October. What you see above is the collated income statement for five quarters back to back. Revenue broke the 3bil mark for this latest quarter. Consistent increments to profit after tax on a quarterly basis. I don't see anything striking here.

One point to note, its zero net debt position from 1st Qtr 2014 has since ballooned to 2.3bil. Interest bearing borrowings increased mainly due to consolidation of TPCIL and increase in Marine's borrowings for capital expenditures for the new yard in Brazil. I wonder how the drop in oil prices will affect Marines oil and gas exploration foray over there. Full completion is scheduled for end 2014. Latest 3rd Qtr result shows $1.2322 cash in hand per share, 10.697x rolling pe and 1.59x books. If it manages to continue to maintain its 17cts distribution per annum, its current yield will work out to be around 3.66%.