StarHub’s 4Q09 Profit Slides 15%
Singapore’s 2nd largest telco company StarHub has reported a drop of 15.1% in 4Q09 net profit to $74.2m mainly as a result of lower revenue from its broadband arm and higher cost of sales. Revenue for the quarter ended Dec 31, 2009 rose marginally by 2.5% to $550m. The company has declared a dividend of $0.05 for the quarter.

The operator’s 4Q profitability was dented by a 20.2% increase in cost of sales to $230.3m as a result of higher equipment and services costs. Sales rose across 3 out of StarHub’s 4 business segments in 4Q, with its broadband unit being the lone exception as consumers continue to opt for lower-end plans and subscription discounts. Looking ahead to the rest of the 2010, the company said it expects to grow its FY10 operating revenue in the low single-digit range.

SATS’ 3Q Profit Up 42% On Increased SFI Contribution
The $509m gamble on acquiring Singapore Food Industry (SFI) seemed to have paid off handsomely for Singapore Airport Terminal Services (SATS) as the former’s contribution helped boost its net earnings for 3Q10 ended Dec 31, 2009 by 42% on-year to $53.4m. Topline revenue rose 79.2% to $434.3m, of which $199.6m came from SFI. Compared with the 2Q10, SFI’s contribution to SATS’ revenue was $62.8m or 45.9% higher, thanks to better sales reported by Daniels Group in the UK. Quarter-to-quarter aviation revenue also improved $9.9m or 4.5%, reflecting the improving trend in the aviation industry. But compared with the same quarter a year earlier, aviation revenue was still 2.6% lower at $228.4m.

Sembcorp Marine Unveils Plans To Build New Shipyard In Brazil
Sembcorp Marine announced yesterday it is building a new shipyard in Brazil to take advantage of one of the fastest growing offshore oil-and-gas (O&G) exploration and production markets in the world. The company has acquired a site in Espirito Santo State, which is the 2nd largest producer of oil in Brazil, with freehold land area of 82.5 hectares to be developed as a shipyard. The purchase price will be disclosed later through a separate announcement.

Engineering design for the new shipyard has commenced, with development and construction works to be undertaken in stages. It is believed that marketing for the yard’s services has already begun as the company scrambles to get a slice of Petrobras’ 5-year investment budget of US$174.4b from 2009 to 2013 which it announced last year. Work on topside modules, for example, can be done concurrently as the yard is being built.

SMEs’ Business Confidence Turns Positive In 4Q: HSBC Survey
According to a survey by HSBC, business confidence among Singapore’s SMEs continued to climb in 4Q last year, placing the confidence level back in positive territory, reported The Business Times. The confidence index rose from 93 in 2Q (previous survey) to 117. A score of 100 or more indicates positive level.

About 300 local SMEs with less than US$30m in annual turnover were polled. 39% of the respondents said that they expect growth in GDP, compared to only 16% who said so in 2Q. The proportion of local SMEs that plan to increase capital expenditure is up 8 percentage points to 30%. About 17% said that they plan to hire, up from 9% in 2Q last year. The trend in Singapore is largely in line with sentiment in the region. When taken as a whole, SMEs in Asia scored 122 on the HSBC monitor, up from 107.