SIAS Research has given a hold rating on Penguin International. Over the last few years, Penguin International has transformed from a ferry operator to an integrated marine and offshore services provider. To leverage on the high oil price and buoyant offshore demand, Penguin is expanding its fleet for offshore services with the more acquisitions and has focused more into Middle East market. These expansions will lead to higher revenue and earnings from FY09.

Rising costs such as oil price, manpower expense and utilities will also affect profit margins, especially for the ferry business. SIAS forecasts FY08 revenue to grow 17% to $94.9m and earnings to drop 69% to $2.5m due to significantly lower exceptional gain.