WLD 2020FY PROFIT

At 1H2020,WLD got 2.1M loss after 2.7M non recurring cost.
so let see 2H 2020 operation result.
From 01/20-06/20,Ocean Drover finished 5 voyages (one to Middle East,two trip to China, one to Indonesia,one to Vietnam).
Ocean Sheare finished 3 voyages(one to Indonesia,one to Vietnam,one to Middle East)
Ocean swagman finished 3 voyages(two trip to Vietnam,one trip to China), have stopped at singapore nearly 2 months for major maintance
Ocean ute finished 6 voyages(three trip to Vietnam,2 trip to Indonesia,1 trip to China)
total finished 17 voyages at 2H 2020.
1H 2020 WLD finished 21 voyages got 49.1M revenue,2H 2020 17 voyages should be38- 40M revenue.
At 1H 2020, the gross profit margin is 36.3%,I suppose the profit margin at 2H 2020 is the same level as 1H, so 38-40M revenue get 13-14.5M gross profit.
now we compare the operation cost with 1H 2020.

1.Net finance cost are 5.7M at 1H 2020,most of this is interest paid from the debt. At 31 Dec 2019,net debt is 84.5M,at 30 Jun 2019,net debt is 111.8M, we can see the average interest rate for Wellard is over 10%p.a, After 27 March 2020,when Wellard sold ocean sheare, the net debt is 28.7M now.
so net finance at 2H 2020 about 3.5M(5.7M*0.5+28.7*0.1*0.25），reduce more than 2M.
2. Depreciation and amortisation cost is 6.3M at 1H 2020,At 31 Oct 2019,Wellard owned 4 boats,At 31Dec 2019,Wellard owned 3 boats,After 27 March 2020 ,wellard only have 2 boats.More asset measns more depreciation in future and the asset are newer,the depreciation are more.（ocean sheare only 4 years old,ocean swagman 10 years old,ocean drover 18 years old ,ocean ute nearlr 25）i suppose depreciation and amortisation cost reduced 50% at 2H 2020, reduce 3M
3. oil price




the bunker price (vlsfo) at 1h2020,average is US$550/tone,1st quarter 2020 ,average price is is US$500/tone. Second quarter 2020 is US$300/tone.
Ocean ute carrying capacity is 7285 t DWT,Ocean Swagman carrying capacity is 7850t DWT. Ocean drover carrying capacity is 24610 t DWT.
I suppose Ocean ute/ Ocean swagman 's oil consumption is 500 kg/hour when the boat sailled at full speed..The Oean Drover 's oil consumption is 1 tone/hour when the boat sailled at full speed.Every month there are 20 days the boat is sailling on the sea.
Compare with 1Q 2020 and 2Q 2020,just 2Q ,these 3 boats have saved nearly 1M bunker expense.(0.5*24*20*3*USD$200+0.5*24*20*3*USD$200+1*24*20*3*USD$200=USD$0.58M)


At 1h 2020,Wellard have 2.7M non recurring cost ，but 2H 2020,there will have nothing.


1H 2020 wellard hold 5.2M cash plus 6.2M trade and other receivable,total is 11.4M
After 27 March 2020 when Wellard sold out the ocean sheare have got another USD$12M cash on hand plus the 2H 2020 operating cash flow,at 30 June 2020,Wellard have at least 30M-35M cash on hand.
Now the market capital for WLD only 28M and this company have 30M-35M cash on hand, is overvalue or undervalue????
At last, we dont need worry about the class action now.Wellard have bought insurance for that,Even if Wellard loses the lawsuit,the company dont need pay anything for the shareholder.