Shares & Derivatives
Ezra – 1H FY 2008 Results Review and Analysis (Part 2)
By Musicwhiz  •  April 17, 2008
By: musicwhiz To continue my analysis of Ezra’s 1H FY 2008 financials, I shall touch on the Cash Flow Statement in this section as well as give general comments on the company’s plans and prospects. A little will be mentioned on EOC (48.9% owned by Ezra) as well with regards to their expansion and latest news and how the earnings will flow up to the Group level. Cash Flow Statement Analysis As Ezra fleet comes on-stream, the Group is increasingly capturing mid-term charter contracts for their new vessels at higher rates than previously. This, coupled with their charters for their older AHT and AHTS, form a good base for which cash inflows can flow into the company, thereby forming a core cash flow base. I would therefore expect to see strong cash inflows from operating activities every period, notwithstanding the fact that sometimes credit may be extended to customers in order to maintain good relations, and this may cause a temporary decline in cash using the indirect method of preparing the cash flow statement. There may also be periods of time where recognition of revenue is out of sync with the actual receipt of cash, hence this is more of a timing issue (an accounting problem) rather than a case of cash flow difficulties. Read more... Further Reading: Ezra - 1H FY 2008 Results Review and Analysis (Part 1)
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By Musicwhiz
Musicwhiz who is in his 30s is educated in accounting and works in the investment line (but not in a bank, financial institution, brokerage or fund house). He has a have a full-time job and investing is his side-line as well as passion. Musicwhiz is a value investor and his technique is derived from the teachings of Warren Buffett, Benjamin Graham and Phil Fisher. He incorporate all aspects of their investing style, and modify his value investing style to the Singapore market.

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