KS Energy

Overview
KS Energy expertise in oil and gas capital equipment & related projects to major oil companies in Asia, Scandinavia, North America as well as the Middle East.

KS Energy Services Limited, an energy services company, distributes oil and gas-related products worldwide. It supplies and distributes approximately 60,000 oil and gas related products, including hydraulic equipment, instrumentation, valves, and spare parts primarily to the oil and gas, marine, mining, and petrochemical industries. The company also assembles and trades electrical engineering goods, electronics appliances, and heavy equipment; provides marketing and project-based procurement services; oilfield support, engineering, and consultancy services; and repair, fabrication, and maintenance of pump and seals. In addition, KS Energy offers offshore and rig services; leases equipment to the oil and gas industry; distributes electronic motor, machinery, electronic equipment, and chemicals; supplies and services industrial/marine hoses, fittings, and related products; and engages in the design, engineering, fabrication, system integration, and trading of engineering products. Further, the company engages in the ship handling, sale of marine spares equipment, trading of marine-related products, provision of marine-related services, and testing and certification services for related marine, offshore, and construction products. KS Energy operates through its subsidiaries and representative offices in Singapore, China, Vietnam, Thailand, Qatar, United Arab Emirates, the United States, Malaysia, Hong Kong, and Mauritius. The company, formerly known as KS Tech, Ltd., was founded in 1974 by Tan Kim Seng. It changed its name to KS Energy Services Limited in 2005. KS Energy is headquartered in Singapore

Rig Capital Equipment Projects
Combined KS Energy services - Atlantic oilfield services rig fleet
1. KS Challenger I & II
2. KS Challenger III
3. KS Discoverer I
4. KS Discover II
5. Land Rig#6
6. KS BR-1
7. Dixie Patriot
8. Titan 1
9. Titan 2
10. KS Venture
11. Super M2
12. Yu Song
13. Atlantic Rotterdam
14. Atlantic Beta
15. KS Explorer
16. Harta-1
17. Land Rig#7
18. Atlantic Esjberg
19. Bennevis
20. Atlantic Venture

Strategy Analysis
Competitive Edge
1) Cost leadership
2) Product differentiation
Durability
1) Rivalry among exisiting firms
2) Threat of new entrants
3) Threat of substitute products
4) Bargaining power of buyers
5) Bargaining power of suppliers
Questions
1) What is the relationship between SembCorp Marine and Cosco Corp. Competititor or Ally?

News
16 Oct 2007
KS Energy Services Limited announced that KS Energy had acquired a shelf company known as ‘KS Oil Rig Services Inc.’ (“KS Oil Rig”) which was incorporated in the British Virgin Islands with an authorised share capital of US$50,000.00 divided into 50,000 shares of US$1.00 each. KS Oil Rig is a wholly-owned subsidiary of KS Energy with effect from 3 July 2007. The paid-up share capital of KS Oil Rig will be US$50,000.00. The principal activity of KS Oil Rig is that of an investment holding company for the purpose of seeking business opportunities in the USA and Gulf of Mexico. The abovementioned transaction was funded by internal resources.

News
EPS is 0.03(Y02), 0.04(Y03), 0.09(Y04), 0.14(Y05), 0.21(Y06), 0.31(Y07)
Price range is 0.22-0.495(Y03), 0.345-0.717(Y04),0.487-2.222(Y05),1.85-2.76(Y06), 2.43-3.58(Y07)
PE ratio range is 5.5-12.4(Y03), 3.8-8.0(Y04), 3.5-15.9(Y05), 8.8-13.2(Y06), 7.8-11.6(Y07)
Y08 est EPS 0.18-0.33. medium is 0.28

Using past PE range of 3.8-15.9,
and Y08 est EPS (0.28), price range is 1.064-4.452
2May08, 1.73. HPE 5.5, TPE 6.17. 20% est range.

Ratios
Profitibility ____ Y07
Operating Margin _ 24%