EMS Energy: (S$0.35) Offshore oil associate to brave a Catalist listing
EMS Energy’s 20% owned associate, Oilfield Services and Supplies (OSS) has commenced the pre-listing procedure for a planned IPO on the Catalist board.
OSS is an upstream offshore play, which specialises in downhole drilling products and precision machining, and precision machining, and drilling services.
EMS had previously held a 40% stake in OSS before paring it down through a sale to Ong See Kong in 2013 on condition that Ong would seek to list OSS within three years.
The company boasts a geographically diversified portfolio spanning Asia, Russia, North Africa, Northern Europe, and Mexico. It lists oil field majors such as Baker Hughes, and Halliburton as current clients.
However, based on EMS Energy’s 1H15 results, OSS would have reported a 70.2% slump in net profit from $3.2m to less than $1m. EMS’s book valuation of OSS indicates that the company is worth at least $40m.
With the currently depressed oil market as well as oil majors slashing capex, it is brave indeed for EMS to attempt a listing of its offshore oil associate.
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