UMWOG – Fundamental Analysis (8 Jan 2015)

UMWOG Analysis:-

Excel –

Notes –

My View:-

  • Valuation:
    • Absolute PE:
      • FY13 (EPS: 0.118) – Fair value 2.2 (Fair Value Uncertainty: HIGH)
      • R4Q (EPS: 0.17) – Fair value 3.19 (Fair Value Uncertainty: MEDIUM)
    • Absolute EY%:
      • Trailing:
        • FY13 (EPS: 0.118) – Fair value 2.87 (Fair Value Uncertainty: MEDIUM)
        • R4Q (EPS: 0.17) – Fair value 4.16 (Fair Value Uncertainty: LOW)
      • Forward:
        • FY15 (EPS: 0.188) – Fair value 4.58 (Fair Value Uncertainty: LOW)
        • FY16 (EPS: 0.22) – Fair value 5.36 (Fair Value Uncertainty: LOW)
      • EPS applied to reach the current stock price (2.22): 0.091
  • Valuation of UMWOG is very attractive.
  • UMW-OG’s earnings to be buoyant in spite of oil price volatility, on the back of fleet expansion of at least 1 new rig p.a. This is due to Petronas’ priority for local content coupled with limited supply of Malaysian jackups. Demand remain strong with 10 local jackup contracts due for expiry in 2015.
  • On top of that, the group has an advantage over competitors given its young fleet of premium jackups (average age: 1.7 years).
  • UMWOG’s leverage is very high.
  • I am new to UMWOG. Further research is still needed.

Latest Financial – Q3 2014 Financial Report (24 Nov 2014)

At the time of writing, I did not own shares of UMWOG.


2 thoughts on “UMWOG – Fundamental Analysis (8 Jan 2015)

  1. Hi,

    Thanks for the fundamentals analysis, but may I ask how do you obtain the table of the contracts for their rigs? You cited TA research but I couldn’t find this info from their website. Is it only available if you use their stockbroking service?


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