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China Housing and Land Development, Inc. Message Board

hdoe1000 5 posts  |  Last Activity: Aug 6, 2014 10:29 AM Member since: Jan 2, 2008
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  • Reply to

    Q3 estimates exclude $.06 of deferred earnings

    by hdoe1000 Aug 6, 2014 6:48 AM
    hdoe1000 hdoe1000 Aug 6, 2014 10:29 AM Flag

    @chkotime. The Gabon job isn't part of the 2 year contract. The Congo contract most likely starts at the beginning of Q4.

  • Reply to

    Q3 estimates exclude $.06 of deferred earnings

    by hdoe1000 Aug 6, 2014 6:48 AM
    hdoe1000 hdoe1000 Aug 6, 2014 10:06 AM Flag

    Sorry, I have to reduce the mentioned net deferred earnings somewhat. I've found that the company has deferred some of the moving costs (I had overlooked that. It's likely recorded under "deferred mobilization costs" in the balance sheet). The net effect is thus about 2/3 of what I've stated in my original post.

  • Total fully paid moving time for the Tungsten between Malaysia and Congo will be close to 70 days. For that move, the company will receive a lump sum payment of roughly $40M. While the costs of moving the ship are recorded as incurred, the payment will be recognized over a 2 year period starting in 2014 Q4. Before taxes, that means deffered earnings recognition of $.07 for Q2 and $.06 for Q3. Starting with Q4, that accounting method should add about $.015 to reported earnings per quarter.

    I mention that here because management is to stupid to make that clear in its press releases and many investors are not fully aware of that.

    If I assume that the the Titanium maintnance is recorded in Q3 and that operating performace will be at Q2 levels, reported 2014 Q4 eanings should be close to or even exceed $.10/share and 2015 earnings should be at $.40/share for an average utilization rate of 95% (not counting a potential Cobalt contribution)

    Sentiment: Strong Buy

  • Reply to

    Probable main reason for low Q2 earnings

    by hdoe1000 Aug 5, 2014 9:08 AM
    hdoe1000 hdoe1000 Aug 5, 2014 11:52 AM Flag

    Update.
    Indeed, according to the CC, the low utilization rate was because of the move of the Tungsten Explorer in Q2. The move was fully paid in a lump sum, but those moving revenues will be recognized over a 2 years period starting in Q4. Cash earnings in Q2 were thus significantly higher than accounting earnings. The Tungsten is now drilling in Gabon. The Vessefinder info about the location is 2 weeks old.

    Sentiment: Strong Buy

  • UDW ship utilization rate in Q2 was 83% after 95% in Q1. Revenue shortfall around $16M while costs nearly the same as in Q1. That's about $.05/share in earnings. The reason is most likely the Tungsten Explorer. The graph on the company's web page shows a one month interruption/mobilization between two contracts in Q2 for that ship. Tungsten is currently west of South Africa moving to Gabon (according to vesselfinder). Management should have clarified the reason for the low Q2 utilization rate in the press release.

    Sentiment: Strong Buy

CHLN
1.51-0.01(-0.66%)Oct 1 4:00 PMEDT

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