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Headliners (Sembcorp, Hyflux, Hiap Seng, Olam)
Headliners | 30 December 2011
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By: Simeon Ang
Articles (125) Profile

Sembcorp Compete To Build Oman Desalination Facility
Sembcorp Utilities (Sembcorp) is reportedly vying to build Oman’s latest desalination plant, the US$350-400 million ($454-519 million) Ghubrah independent water project (IWP). Sembcorp is among 16 other companies, including another Singapore company, Hyflux, who are contending for the licence to develop, own, finance, and operate the gas fired, water-only project which will produce 42 million gallons of water daily. It will also be the second IWP to be developed in Oman. In July-11, Sembcorp completed the first phase of the Salalah independent water and power project on schedule, enabling it to despatch an initial 61 megawatts of electricity to the power grid there. Sembcorp president and chief executive Tang Kin Fei said that Sembcorp managed to meet the tight schedule in time to cater to the surge in power demand in Dhofar and is confident of completing the entire Salalah project ahead of schedule in April-12. Despite its apparent success in the Middle East, Sembcorp’s latest interest might not be a sure-win. Sembcorp had lost out in June this year to build its second Omani project in the US$1.5-1.6 billion ($1.9-2.1 billion) Sur independent power project there.

Hyflux Injects US$41.2m Into JV In China
Hyflux has injected two China water-treatment plants into its 50-50 joint venture (JV) with Mitsui & Co for a consideration of US$41.2 million ($53.4 million). The transaction is part of an asset-light strategy that Hyflux outlined this year, after forging partnership with the Japanese trading house. The two plants – Shandong Xiajin Water Treatment Plant and Chongqing Hexin District Wastewater Treatment Plant – belonged to Hyflux’s wholly owned Spring China utility. The deal was made through the injection into the JV company of Spring China’s two subsidiaries, Hyflux Utility WTP and Hyflux Utility WWT. These two units hold the two plants. As at December-10, the net asset value of the two companies holding the China plants was US$25.2 million ($32.7 million). Under China’s regulations, all of Hyflux’s plants have to be fully owned by Hyflux, which means it has to put in capital upfront. By divesting its completed plants to the joint venture company, while still holding the operating rights of these plants, Hyflux can take on new projects with the recycled capital.

Hiap Seng Enters Alliance With CNOOC’s Unit
Hiap Seng Engineering has entered a strategic alliance with China’s Offshore Oil Engineering Company, a unit of China National Offshore Oil Corporation (CNOOC) to expand its presence in China. Hiap Seng said it will develop the strategic alliance in stages, starting with cooperation on equipment and parts used in the transport, processing and storage of oil and gas. The next phase will involve joint discussions on the supply of complete topsides systems for fixed production facilities and floating production storage offloading projects. In the third phase, the two companies will form a joint venture to develop projects in the oil and gas (O&G) markets. The strategic alliance enables both companies to jointly develop projects in the oil and gas market in China that bears tremendous potential given the pace of the country’s economic development. Notably, the collaboration will allow Hiap Seng to leverage on CNOOC’s local knowledge capabilities & reputation so as to accelerate its penetration of the market there.

Olam To Acquire Majority Stake In Spain’s MCT
Olam International (Olam) is acquiring a 75.2% interest in Spain’s Macao Commodities Trading (MCT) for 15 million euros ($25.3 million), with an option to take over the remaining 24.8% stake in five years time. MCT is a supplier of cocoa powder, cocoa beans, desiccated coconut, dried fruits, vegetable fats and dairy products to the chocolate, beverage and biscuit industries in Iberia. It also provides food ingredients to the North African markets. Solimar Food Ingredients, a joint venture between MCT and Olam would also be in the list of acquisition. In its media communiqué, Olam said that the acquisition would provide an enhanced entry into the Spanish and larger Iberian market for Olam. It would also offer the potential to further expand with Iberian customers and new markets for chocolate, bakery and beverage ingredients. Olam’s acquisition of MCT is seen to be taking advantage of analysts’ projection of a steep appreciation in prices of cocoa beans. Industry talk has projected cocoa beans to replace caviar as a premium good in the next 20 years.

Simeon, an LSE graduate, is currently the editor of Aspire. He specialises on topics surrounding trading psychology, politics and macroeconomics.

Please click here for more information about this author.

Sembcorp Industries  2.080 -0.02 -0.95%   
Business: Primarily engaged in the production and supply of utilities services. [FY18 Turnover] Utilities (55.9%), marine (41.8%), others/corp (2.2%), urban development (0.1%).

Insight: May-19, 1Q19 revenue fell 10.1% to $2.5b due to lo... Read More
Hyflux  -- -- --   
Business: Provides integrated water management & environmental solutions. [FY17 Turnover] Municipal (82.5%), industrial (16%), others (1.5%).

Insight: Mar-19, 9M18 revenue sank 75% due to lower enginee... Read More
Hiap Seng Engineering  -- -- --   
Business: A specialist integrated engineering group for the O&G, petrochemical & pharmaceutical industries. [FY19 Turnover] Plant construction & maintenance (95.6%), compression & process eqmt fabrication (4.4%).

Insight: Jun-19, FY19 revenue rose 25.1% to $148.8m due to ... Read More
Olam Int'l  1.830 +0.020 +1.10%   
Business: Co is engaged in sourcing, processing, packaging and merchandising agricultural products. [FY18 Turnover] Food staples & packaged foods (47.6%), confectionery & beverage ingredients (23.4%), industrial raw materials, infrastructure & logistics (14.9%), edible nuts & spices (14.1%).

Insight: May-19, 1Q19 revenue rose 16.7% due to increased t... Read More

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