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Headliners (Ezion, First REIT, Rotary, Z-Obee)
Headliners | 28 September 2012
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By: Nicholas Tan
Articles (71) Profile

Ezion Secures A Contract And A Letter Of Intent Totalling US$283m
Ezion Holdings, an oil and gas industry service provider, has secured a charter contract and a letter of intent to provide 2 service rigs to be used by a Southeast Asian based national oil company to support its oil and gas activities in the Caspian Sea. The charter contract is valued at approximately US$201m over a 5 year period and the service rig is expected to be deployed and working in the fields of Garagel-Deniz (Gubkin), Deyarbekir (Barinov) and Magtymguly (East Livanov) by 4Q13 after its refurbishment and upgrading. The letter of intent with the customer is valued at approximately US$82.1m over a 5 year period and entails the provision of another service rig by Ezion which will be deployed by 4Q14 to support the oil and gas activities in the Caspian region. Coupled with Ezion’s recent fund-raising efforts, it is anticipated that more deals are to come over the next 3 to 6 months.

First REIT Acquires Various Indon Properties For $143m
First Real Estate Investment Trust’s (REIT’s) manager announced that it had entered into agreements to acquire 2 new properties in Indonesia. The proposed acquisition comprises of an integrated hospital and hotel in Manado, and another hospital in Makassar in Sulawesi. The acquisitions which was signed with PT Lippo Karawaci TBK, amount to approximately $142.9m and will increase First REIT’s total asset size to $782.2m. In its media communiqué, the trust said that based on the average valuations of Knight Frank and CB Richard Ellis, the Manado and Makassar properties will be acquired at a discount of 10.8% and 9.8% respectively. First REIT and PT Lippo Karawaci TBK also signed conditional master lease agreements for lease terms of 15 years, with an option to renew for a further term of 15 years. This agreement, which will contribute to its growing portfolio of healthcare assets in Indonesia, Singapore and South Korea, will help the trust strengthen its income streams with stable gross rental income over the next 15 to 30 years and also enhance overall capital management flexibility.

Rotary Hit By Saudi Arabia Project Cost Woes
Rotary Engineering, an oil and gas industry service provider, notably in the Asia Pacific and the Middle Eastern regions issued a profit warning on 24 Sep-12. Rotary said that it expects to record a net loss for 3Q12 and 9M12 ending 30 September 2012 and, consequently, a full year net loss. The company attributed the expected losses to the US$745m Saudi Aramco Total Refining and Petrochemical Company project in Saudi Arabia, saying that though the contract has since raised Rotary’s profile in the Middle Eastern market (which contributed 53% of its revenue of $244.8m in 1H12), it has also taken a toll on its bottom line as problems emerged towards the end of the construction phase, racking up extra costs which significantly ate into its gross margin. In its 1H12 results announcement ended 30 June 2012, Rotary had explained that more sub-contractors had to be brought in at higher cost after the original civil sub-contractors could not meet the schedule. In addition, late changes to the engineering design also resulted in major civil rework, hence, piping, electrical and instrumentation activities were also affected.

Z-Obee Subsidiary Secures Seven Supply Contracts
Z-Obee Holdings, a company principally engaged in the mobile handset industry, announced on 25 Sep-12 that its wholly-owned subsidiary, Zeus Telecommunication Technology Holdings had entered into supply contracts agreement with 7 independent third-party contractors worth Rmb26m ($5m) to supply a project lighting system for the office building of China Development Bank in Fuxingmen, Xicheng District, Beijing. The supply contracts are expected to contribute positively to the group’s revenue and net profit for the financial year ending 31 March-2013. Z-Obee believes that the supply agreements will provide a good foundation and opportunity to gain a foothold in the lighting market and enhance the customer portfolio of the company, which is in line with its strategy to develop high-value added scientific and technological projects and to actively seek alternative opportunities to broaden its revenue base amid intense competition in the mobile handset industry.

Well trained in aspects of finance and business, Nicholas oversees the finance and manufacturing sectors at Shares Investment.

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Ezion Hldgs  -- -- --   
Business: Co develops, owns, and charters offshore assets to support the offshore energy markets. [FY17 Turnover] Liftboats (49.7%), Jack-up Rigs (39.5%), Offshore Support Logistic Services (10.8%).

Insight: Aug-18, 1H18, Co returned to the black with a net ... Read More
First REIT  1.070 +0.010 +0.94%   
Business: Co is a healthcare real estate investment trust. [FY18 Geographical] Indonesia (96%), Singapore (3.4%), Korea (0.6%).

Insight: Apr-19, 1Q19 gross revenue was slightly down by 0.... Read More

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