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Headliners (Noble Grp, Keppel Corp, NOL, UOL Grp)
Headliners | 20 May 2011
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By: Jade Lee
Articles (97) Profile

Noble Sells Donaldson Coal For A$360m
Australian miner Gloucester Coal said it will buy Donaldson Coal Holdings from its major shareholder Noble Group for A$360m. The deal will deliver Gloucester more thermal and coking-coal mines and give it access to new port capacity. Gloucester said it planned to raise A$230m through an equity issue at A$9 per share, a 9% discount, to partly fund the deal, which includes acquiring Monash Group, an undeveloped semi-soft coking coal and thermal coal opportunity.

Through Donaldson, Gloucester will get an 11.6% stake in a new coal export terminal at Newcastle, Australia’s largest coal export port. Nonetheless, analysts give Gloucester deal a mixed response. Macquarie Research said the price for Donaldson and Monash appeared “very full” while RBS believes the acquisition is better for Noble’s shareholders than for Gloucester, adding that the deal is “difficult to digest”.

Keppel Unit Secures US$772m Contract
Keppel Corporation’s subsidiary, Keppel FELS has clinched a contract worth some US$772m to build 4 more jackup rigs for returning customer Oslo-listed SD Standard Drilling plc (Standard Drilling). Standard Drilling, which ordered its first jack-up rig from Keppel FELS last November, now has a combined fleet of 7 KFELS B Class rigs, all built exclusively at Keppel FELS. The latest transaction is not expected to have material impact on Keppel Corp’s tangible assets or earnings per share for FY11. “In ordering 4 repeat rigs at once, Standard Drilling has demonstrated its industry foresight, as well as reaffirmed the market’s confidence in our proprietary design and quality execution,” said Keppel FELS. These latest contracts also boost the value of Keppel Corp’s new order secured year-to-date to over $6.4b. Furthermore, this again shows KFELS B Class has become the industry’s benchmark solution and features strongly in the fleets of today’s leading offshore drillers.

NOL Narrows 1Q11 Loss On Higher Liner Revenue
NOL Group’s 1Q11 net loss reduced significantly to US$9.7m, from a net loss of US$98.5m a year ago. The firm’s revenue jumped 16% to US$2.4b, boosted by liner revenue from higher volumes and freight rates from its liner shipping unit, APL. An unforeseen soft Chinese New Year season and rising fuel costs, however, drew blood from the bottom line, turning it red. Meanwhile, cost of sales for the quarter increased by 12% to US$2.3b, in part because of higher volumes, but also because of higher bunker costs. According to NOL, the increased operating costs, particularly fuel-related cost, and competitive pressure on rates are expected to continue for the near term. It warned that its results will be ‘negatively impacted’ if these factors persist.

UOL Posts 133% Jump In 1Q11 Earnings
UOL Group posted a 133% rise in 1Q11 net profit to $230m, up from the restated $98.7m a year ago, on the back of a 102% jump in revenue to $725.1m, up from the restated 1Q10 revenue of $358.9m. The results for 2010 were restated due to the adoption of the Financial Reporting Standard INT FRS 115. Excluding the effects of the adoption, net profit for 1Q11 would have been $125.3m, up 43% from the previous corresponding period. The improvement came mainly from higher progressive development income recognized from residential projects launched in recent years, as well as a higher share of profit from associated companies. Higher recurring income from the group’s portfolio of retail and office properties as well as from its serviced apartment business also helped lift overall performance in 1Q11.

Jade manages and oversees a portfolio of stocks which are mainly focused on the mining and property sectors at Shares Investment.

Please click here for more information about this author.

Keppel Corp  5.840 -0.12 -2.01%   
Business: [FY18 Turnover] Infrastructure (44.1%), offshore & marine (O&M) (31.4%), property (22.5%), investments (2%).

Insight: Apr-19, 1Q19 revenue rose 4.1% underpinned by high... Read More
UOL Group  7.530 -0.02 -0.26%   
Business: Co engages in property development, property investments, and hotel businesses. [FY17 Turnover] Ppty devt (52.2%), hotel ops (23.6%), ppty invs (14.9%), invs & others (9.3%).

Insight: Aug-18, 1H18 revenue jumped 72.9% to $1.3b attribu... Read More

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