GSS Energy is at an inflexion point: It has just been awarded a new contract by Pertamina. Meanwhile, GSS Energy's other business segment, precision engineering, is readying for increased output.

The company was featured in the Oct 17 edition of The Edge Singapore. Here, we distill key figures and quotes by the CEO for easy reading.

GSS Energy traded at 8 cents yesterday for a trailing PE of 4.5 and a market cap of S$40 million. The PE would be lower if you consider that GSS Energy held net cash of S$14.7 million as of end-June 2016.


 → Precision Engineering segment: 


1H2016: 

Revenue S$35.1 million
Net profit: S$6.95 million


PCBA.8.16
2H 2016: 

• Hiring additional 600 workers on top of the existing 1,200 in Batam factory.

• Reason: To meet secured new orders.

Prospect: More aggressive efforts to achieve orders: 

sydney face8.14"We will be more proactive in showing our clients what our capabilities are , and we will see our revenue going up pretty substantially."

-- Sydney Yeung, CEO, GSS Energy
• Total headcount for three factories in Batam, one in Singapore and one in Changzhou, China: Nearly 2,000.

"One can imagine the possibility of us spinning off the engineering part; but the oil and gas business has to be ready first. The key right now is to make sure oil & gas can be self-sufficient, and be brought to production as soon as possible."

-- Sydney Yeung, CEO, GSS Energy

 → Oil & gas segment:  

• GSS Energy and its JV partner secured a contract in Oct 2016 directly from Pertamina, the national oil company of Indonesia.

• Contract confers rights to produce oil from a 47.61 sq km field in the Trembul area in Java.

• Reserves are estimated at 15 million barrels as the base case and up to 25 million barrels in a more bullish case.

• Field is worth US$75 million.

• Field shares the same basin as the one which ExxonMobil pumps out 180,000 barrels a day currently.
Production will start by end of 1H2017.

• Cost of production estimated at US$12 per barrel.



Comments  

0 #2 Goo 2016-10-26 14:14
Chew:
1H2016:S$4.95 million net profit by Precision Engg. Excluding one-off, net profit after tax by PE was S$2.48 million.
Quote
0 #1 chewbecca 2016-10-26 10:04
Isn't the net profit for precision engineering due to one-off gains???
Quote

Share Prices

Counter NameLastChange
AEM Holdings0.9450.010
Alliance Mineral0.2300.005
Anchor Resources0.027-
AusGroup0.0340.001
Avi-Tech Electronics0.290-
Best World Int.2.710-0.020
China Sunsine1.3300.030
CSE Global0.4300.005
Food Empire0.5350.010
Geo Energy0.1900.001
Golden Energy0.2250.005
GSS Energy0.1050.003
HMI0.540-
ISDN Holdings0.200-
KSH Holdings0.5250.005
Miyoshi0.046-
Moya Asia0.079-
Nordic Group0.380-
Oxley Holdings0.3000.005
REX International0.0780.003
Riverstone1.1200.020
Roxy-Pacific0.405-
Sing Holdings0.390-
SingMedical0.420-0.005
Sino Grandness0.1180.001
Straco Corp.0.730-
Sunningdale Tech1.480-
Sunpower Group0.4000.010
The Trendlines0.1010.006
Tiong Seng0.270-
Uni-Asia Group1.190-
XMH Holdings0.161-
Yangzijiang Shipbldg1.3400.020

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 3717 guests and one member online

  • josephyeo