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Headliners (Keppel O&M, Great Eastern Holdings, Federal International (2000), Rotary Engineering)
Headliners | 09 November 2012
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By: Jade Lee
Articles (97) Profile

Keppel O&M Clinched Contracts Worth $160m
Keppel Offshore and Marine (Keppel O&M), a subsidiary of conglomerate Keppel Corp, said that its overseas yards in the Philippines and the Netherlands have won contracts totalling $160m. Keppel Subic Shipyard will build a depletion compression platform (DCP) for Shell Philippines Exploration to support natural gas recovery in the Malampaya gas field near Palawan Island. The Subic yard is beefing up its capabilities with a 1,500 tonne gantry crane, other cranes and worksite facilities like workshops to accommodate more work. In the Netherlands, Keppel Verolme will embark on the drydocking survey of a deepwater construction vessel, Balder, from its repeat customer Heerema Marine Contractors. The yard had previously worked on the Balder in 2001 when it converted it. Keppel Verolme will paint the Balder’s hull, bracings and cranes, as well as maintain and repair its tanks and piping. The work is expected to wrap up in 1Q13.

GEH Reports Record Earnings On Sale Of APB And F&N
Great Eastern Holdings (GEH) turned in $619.6m in earnings for the third quarter financial results ended 30 Sep-12, which included a one-time post-tax gain of $421.6m arising from the sale of its shareholdings in Asia Pacific Breweries (APB) and Fraser & Neave (F&N). GEH posted a $40.4m net profit a year ago. Excluding this gain, earnings was $198m, underpinned by continued growth in underwriting profit and mark-to-market gains on investments. GEH also recorded stable total weighted new sales for the quarter at $202.5m. The steady sales performance reflected the overall higher demand for regular premium products, which was offset by the lower sales of single premium products resulting from a limited availability of appropriate underlying investments due to the low-interest-rate environment.

Federal International (2000) To Sell Vessel For US$52m
Marine logistics provider, Federal International (2000), announced that its subsidiary, Eastern Jason Fabrication Services has entered into a memorandum of agreement with PT Eastern Jason for the sale of its vessel “Federal II” as a floating, storage and offloading vessel (FSO) for US$52m. In connection with the proposed disposal, the company is also intending to enter a contract with a shipyard, PT Pratama Unggul Lestari, to convert “Federal II” to a FSO. The sale price is in line with the valuation by Ritchie & Bisset (Far East) and the company’s own estimates of the value of the vessel, which also took into account the cost for the conversion of the vessel into a FSO and potential earnings from the sale. The company notes that the sale is an opportunity for the vessel to be profit generating after a conversion to FSO as the vessel has been off-hire since Nov-10 and has been incurring impairment costs. The disposal will help to improve the company’s cash flow. The proceeds from the sale of the vessel will be used to repay borrowings and serve as general working capital for the company.

Rotary Engineering Takes A Nosedive With $62m Loss In 9M12
Rotary Engineering posted a net loss of $62m for the nine month ended 30 Sep-12, compared to a net gain of $22.7m during the same period last year. The fall in earnings was due to the problems encountered at the tail end of the construction phase of the SATORP project that had resulted in additional cost and lower gross margin. Rotary derives about 46% of its revenue from the Middle East, on par with contributions from Singapore, with Asean and others contributing about 8%. Apart from the SATORP project, Rotary has two other projects in the Middle East. This includes a US$250m contract for Fujairah Oil Terminal in the United Arab Emirates and a US$34m deal to build 17 field storage tanks in Saudi Arabia relating to the US$1.2b Shoaiba II Combined Cycle Power Plant Project in Shoaiba, some 120 km south of the Red Sea city of Jeddah.

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  5.960 -0.02 -0.33%   
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
Great Eastern Hldgs  21.570 -0.09 -0.42%   
Business: Unit of OCBC. Turnover comprised of gross premiums, invs, interest and rental income, fees & other income as well as gain/loss on sale of invs.

Insight: May-19, 1Q19 gross premiums rose 6.5% partly due t... Read More

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