KS Energy

KS Energy: Still no news on convertible bonds. KS Energy reported a 41.7% increase in rev to $698.1m and a net profit of $1.3m in FY12, vs OCBC forecast of a full year net loss of $1.0m. This compares to a net loss of $78.8m in FY11. There is still no news on the group’s convertible bonds, which may be redeemed by investors in Mar this year. Mgt only mentioned that it is still working on various options to meet this funding requirement. The group’s cash level stood at $60.7m, with a net gearing of 0.75x as at 31 Dec12. Looking ahead, mgt is cautiously optimistic about prospects in FY13. There will also be increased focus on Indonesia for the drilling segment. OCBC maintain HOLD with $0.78 fair value estimate.