Penguin International posts 16% drop in net profit for H2 FY20

HIGH-SPEED craft builder Penguin International's net profit for the six months ended Dec 31, 2020 fell 16 per cent year-on-year to S$9.3 million.

Revenue edged up 1.3 per cent to S$69.28 million due to an increase in the number of stock vessels sold, while earnings per share fell to 4.22 Singapore cents from 5.02 Singapore cents.

Penguin said that its core shipbuilding and crewboat chartering businesses have been hit by the pandemic and depressed oil prices. "Demand for new vessels has weakened, and crewboat charter rates and utilisation rates have fallen year-on-year," it added.

For the 12 months ended Dec 31, 2020, net profit was 32 per cent lower at S$13.21 million, while revenue was around 12 per cent lower at S$119.42 million.

No dividend was recommended for the period under review. For the corresponding period last year, a dividend of 1.75 Singapore cents per share was paid out.

Last month, a consortium which includes Penguin's executive chairman Jeffrey Hing, managing director James Tham and a Dymon Asia fund launched an offer to take Penguin private at S$0.65 per share.

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At S$0.65, the offer price represents a premium of 30 per cent over the last transacted price of S$0.50 per share on Dec 18, 2020 before Penguin flagged a possible transaction involving its shares.

It also represents a premium of 35.7 per cent, 42.5 per cent, 44.4 per cent and 17.5 per cent over the volume-weighted average price per share for the one-month, three-month, six-month and 12-month periods, respectively.

The offer is conditional upon the offeror and its concert parties securing enough acceptances to lift their collective stake past the 50 per cent threshold. The offerer plans to delist the stock if it acquires control of over 90 per cent of Penguin.

According to a filing to the Singapore Exchange on Thursday, the percentage of shares in Penguin owned, controlled or agreed to be acquired by the offerer and concert parties was 33.7 per cent.

The counter closed at 65 Singapore cents on Thursday, unchanged.