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Singapore’s Big Loser for the Week: ES Group (Holdings) Limited

ES Group (Holdings) Limited  (SGX: 5RC) has slumped by 29.3% since last Friday to close at S$0.14 on Christmas Eve. With the Straits Times Index (SGX: ^STI) moving the opposite direction, gaining close to 2%, during the same time frame, it makes ES Group a big loser for the holiday-shortened week.

Established in 1975, ES Group is a marine and offshore group that builds, converts, and repairs a wide range of vessels like tugs, barges, rigs, offshore support vessels, oil tankers, and cargo ships. The company has been a sub-contractor for marine companies such as Sembawang Shipyard, which is part of Sembcorp Marine Ltd and Keppel FELS, which is under the umbrella of Keppel Corporation Limited.

The firm posted its financial results for the six months ended 30 June 2014 back in August.

Revenue for the period slipped 40% year-on-year to S$27.2 million due to an “absence of the one-off sale and demise charter of the bunker vessels”. However, the bottom line went up 71.8% to S$2.5 million on the back of better cost efficiencies from economies of scale, as work volume increased at its subsidiary in the Land of Smiles, Thailand. ES Group owns a 70,000-square-metre shipyard with fabrication grounds in the country.

Mr Christopher Low, Chief Executive Officer of the marine and offshore outfit, commented in that earnings release:

“The encouraging half-year performance underscores our ability to secure repeat orders and to leverage on the strengths and resources of our Thailand facility which will become increasingly important in view of the labour restrictions and rising costs in Singapore.”

An interim dividend of 0.20 Singapore cents per share was declared, an uptick from the 0.10 Singapore cents per share that was dished out for the same period a year ago.

The firm is trading at 7 times its historical earnings and has a dividend yield of 2.5%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn't own shares in any company mentioned.