saunders international ltd for personal use only2013/02/21 · 2010 2013 mobil oil australia pty...
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Saunders International Ltd
February 2013
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SAUNDERS INTERNATIONAL LIMITED
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CORPORATE SNAPSHOT
Price A$0.85
ASX Code SND
Shares issued 79.0M
Options -
Market Cap A$67M
Cash A$14.7M
Top 20 Shareholders 80%
Number of Shareholders 590 (approx.)
Substantial
Shareholders Desmond Bryant – 32.7% Timothy Burnett – 20.1% John Power – 6.4%
Corporate Focus: design, construction and maintenance of steel storage tanks and the project management of ancillary facilities
Share Price Performance and Volume as of 21/02/13
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BUSINESS DESCRIPTION The business was founded in 1951 and specialises in the design, construction and maintenance of steel bulk liquid storage tanks.
Saunders’ products and services are provided via two inter related models: − Design & Construction; and − Facilities Maintenance.
DESIGN & CONSTRUCTION FACILITIES MAINTENANCE
Activities The design and construction of steel bulk liquid storage tanks and associated infrastructure
The maintenance of steel bulk liquid storage tanks, focusing on repair and refurbishment of tanks for the petroleum industry.
Key Industry Sectors
− Oil and gas industry − Water and waste water infrastructure
sector − Fuel Terminal sector − Mining and mineral processing
industry
− Petroleum refineries and distributors
− Oil and gas producers and processing facilities
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DESIGN & CONSTRUCTION RECENT PROJECTS: Terminal Expansion Corio, VIC Value $4.2M
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DESIGN & CONSTRUCTION RECENT PROJECTS: Marine Upgrade Port Hedland, WA Value $3.4M
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FACILITIES MAINTENANCE RECENT PROJECTS: Stolthaven Australia Newcastle, NSW
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FIRST HALF FY2013 REVENUE
Total Revenue $28,500
Split of Facilities Maintenance and Design & Construct 55/45
Total number of customers 13
Repeat Customers 12
Percent of Revenue 98%
New Customers 1
Percent of Revenue 2%
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FY13 GEOGRAPHICAL REVENUE DISTRIBUTION
Majority of Revenue from Western states (WA & SA) due to increased activity in the Pilbara
QLD, 14%
WA, 44% SA, 9%
NSW, 22%
VIC, 11%
QLD
WA
SA
NSW
VIC
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OUTLOOK SECOND HALF FY2013
Work in hand 31 Dec 2012 30 Jun 2012 53m 40m
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OUTLOOK SECOND HALF FY2013
Design and Construct - Record “Work in Hand” of $53 million
Work in Hand to carry into FY14
Competitive market place still putting pressure on margins New projects still slow to be released
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OUTLOOK SECOND HALF FY2013
Facilities Maintenance - Revenue from Refinery Maintenance projected to be similar to
FY2012
Outlook for non refinery maintenance work in WA and NSW promising
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COMMERCIAL MODEL Term Contract:
Usually based on either a management fee and cost reimbursable components or unit rate contract
Typically for 1 to 5 years with options to extend
Lump Sum: One off projects or specifically defined scope of work
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FACILITIES MAINTENANCE
Own er/Operator Location
Maintenance services provided
since
Contract nominated end date 3
Oil Refineries Caltex Australia Limited 1 Kurnell Refinery, NSW 1996 2015
Caltex Australia Limited 1 Lytton Refinery, QLD 2000 2015
Shell Refining Australia Pty Ltd Cly de Refinery, NSW 2000 2014
Mobile Refining Australia Pty Ltd 1 Altona Refinery, VIC 1996 No fixed term
BP Australia Pty Ltd Bulwer Island Refinery, QLD 2010 2013
BP Australia Pty Ltd Kwinana Refinery, WA 2010 2013
Oil and Gas Production and Distribution Facilities BP Australia Pty Ltd Australian Terminals 2010 2013
Mobil Oil Australia Pty Ltd Australian Terminals 2006 On going
Santos Limited 1 Central Australia 2005 2012
Shell Refining Australia Pty Ltd Gore Bay Terminal, NSW 2000 2014
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FINANCIAL METRICS
KEY FINANCIAL STATISTICS 31 December 2012 31 December 2011
Revenue $28.5 m $23.343 m
EBITDA $4.4 m $3.4 m
EBITDA % margin 15% 15%
EBIT $4.3 m $3.2 m
NPBT $4.6 m $3.4 m
NPAT $3.3 m $2.4 m
EPS 4.15 cents 3.03 cents
FY 2013 Dividend
Interim Dividend per Share (fully franked) 2.0 cent 1.0 cent
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BALANCE SHEET
Strong cash reserves
No debt
BALANCE SHEET ($ Million) 31 DECEMBER 2012 30 JUNE 2012
Assets
Cash 14,685 17,061
Trade receivables 6,372 8,029
Plant and equipment 1,502 939
Deferred tax assets 959 882
Others 1,092 604
Total Assets 24,610 27,515
Liabilities
Payables 4,840 5,445
Tax Liabilities 1,285 729
Provisions 2,706 2,660
Total Liabilities 9,073 9,026
Net Assets 15,537 18,489
NTA per share 19 cents 21 cents For
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FINANCIAL PERFORMANCE
BUSINESS STRATEGY Design & Construction:
− Concentrate on work with higher margins by undertaking larger and more complex projects
− Increase emphasis of Project Management of Tankage related projects
− Position the business to capitalise on any Fuel Terminal expansion which may be required due to the restructure of Shell and Caltex Refineries
Facilities Maintenance: − Broaden and grow the business unit’s revenue base
− Position the business to participate in the Refinery modifications which will be required due to change of operations at the Shell and Caltex Refineries
Strategic Acquisitions: − Continue search for acquisitions that will enhance the existing business
− Capital required already available and position also enhanced by strong share price For
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