Comments On IOI's Right Issue: Version II

Posted Comments On IOI's Rights Issue yesterday.

Got the following comments...

• 棕油网 said...
  moola, please refer to three items into one,
  
  there are short term fund 1,905,639
  short term deposit 268,556
  cash and bank 341,407
  
  just look back to Humeind, their piggy cash slump after exchange with Evergreen Fibreboard, but later the director gave a clue to the cash position.

Yeah, I goofed up. :p2

I missed out the short term fund and my attempt in the corrections looks so freakingly messy.

Hence this posting.

Let me start over again.

Feb 2008, Quarterly rpt on consolidated results for the financial period ended 31/12/2007

Total cash should be 427.109 + 531.574 + 692.897 = 1651.580 million (or 1.65 Billion)

Short term + long term borrowings = 205.697 + 3363.589 = 3569.186 million (3.569 Billion!)

Which means from a cash/debt position, IOI's is in a net debt position of 3.569 - 1.651 = 1.918 Billion.

Now let's look at the money earned during this period

1. Quarterly rpt on consolidated results for the financial period ended 31/12/2007
Net earnings: _______________ 581.191 million

2. Quarterly rpt on consolidated results for the financial period ended 31/3/2008
Net earnings: _______________ 601.639 million

3. Quarterly rpt on consolidated results for the financial period ended 30/6/2008
Net earnings: _______________ 597.284 million

4. Quarterly rpt on consolidated results for the financial period ended 30/9/2008
Net earnings: _______________ 290.500 million

5. Quarterly rpt on consolidated results for the financial period ended 31/12/2008
Net earnings: _______________ 168.586 million

6. Quarterly rpt on consolidated results for the financial period ended 31/3/2009
Net earnings: _______________ 37.362 million

Adding it all up (did you note the drastic decline in earnings?), I got 2276.562 million (or 2.276 Billion) (hope I did not goofed up again. )

So during this period, IOI made 2.276 Billion.

However, as per IOI's last reported quarterly earnings was on 15th May 2009, Quarterly rpt on consolidated results for the financial period ended 31/3/2009, it showed that IOI cash balances were 268.556 + 341.407 + 1905.639 = 2515.602 million (or 2.515 Billion)

Short term + long term borrowings = 37.771 + 5682.610 = 5721.381 million (5.721 Billion!)

Which meant, from a cash/debt position, IOI's net debt = 5721.381 - 2515.602 = 3205.779 million (or 3.205 Billion!).

Compare to 31/12,2007, IOI was in a net debt of 1.918 billion.

Which means despite earning 2.276 Billion in this period, IOI's net debt increased by 1.918 billion.

Where did the money go?

Yes, I am aware that during a major acquisition or in IOI's case, the privatisation of IOI Properties, cash position does weaken.

Would this be the case?

Now IOI Properties privatisation was completed in April 2009. Now I would use Feb 2009 earnings as a reference point (would I be goofing up here?). Quarterly rpt on consolidated results for the financial period ended 31/12/2008

Total cash = 1005.374 + 397.354 + 445.530 = 1848.258 million or 1.848 Billion.

Short term + Long term borrowings = 73.453 + 3816.098 = 3889.551 million or 3.889 Billion.

Net debt = 3.889 - 1.848 = 2.041 billion.

Ahh...

Which meant that IOI's cash/debt position did not deteriorate as suggested.

However, if we minus the May's earnings, IOI still made a lot of money.

How much? Try 2276.562 - 37.362 = 2.239 Billion.

Yet again... despite making sooooooooooo much money, IOI's balance sheet did NOT reflect the richness gained from the CPO bull run.

Another issue, as seen in May 2009 earnings, IOI was in a net debt of 3205.779 million. In Feb 2009, it was 2.041 billion.

Which meant IOI net debt increased by some 1.164 Billion.

And all this from IOI's Privatisation. (Would I be a goofer to say this?)

Now isn't it ironic that IOI's proposed rights issue amounts to some 1.2 billion?

Would I be goofy to suggest that this rights issue is paying for the privatisation of IOI Property?

How?

Would you be happy?