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observing. attractive price relatively comparing to its peer. diversification into brownfield and upstream engineering contracts via the JV with WHS which is expected to contribute in current fiscal year (FY2026).
Average industry fleet age is slightly more than 13 years while M&G vessels fleet age is approx 10 years (from AR - Given that the vessel disposed during the financial year was the oldest vessel in the fleet and that the vessel to be acquired is less than three (3) years old, these transactions have reduced the average age of the fleet from 10.6 years to 9.8 years as at the financial year end). Demand for M&G's fleet will be strong and charter rates should be decent due to lack of younger fleet out there :) https://www.spglobal.com/commodity-insights/en/news-research/latest-news/crude-oil/082624-aging-tanker-fleet-1-2-fleet-growth-mean-fewer-freight-discounts-on-older-ships
Yes, it is, tkl. Need to do well in terms of risk mgmt for this stock :) the recent results is promising given it's young age fleet of tankers which will be in high demand. The irps is part of the debt restructuring exercise back in 2020. Risk mgmt is important bcos of dilution from irps which is negative but deleveraging which is positive. Debt has gone down from 900+ mil to 500+ mil, interest expense came down from 50 mil to 30 mil. The nosh has gone up from 720+mil to 800 mil due to the irps.
congrats Eric :) Yes, Lee. M&G's peers such as Keyfield and Avangaad are at ~PE6 while others are higher. However, we need to do well in risk mgmt as there could be a possibility of - as share price goes higher, there could be more irps conversion. Ideally, it will be nice if bosses were to acquire all the new shares from irps conversion.
you are welcome, Lee. just sharing what I read from the annual reports :) It all started with Eric's first comment - so quiet here. Saw the comment, had a look at the chart and I liked it. Started digging into the reports to identify opportunities.
