Reports » Singapore

Singapore stock market and companies daily report (ST Engineering, Sembcorp Marine, STX Pan Ocean, China Fishery Group) (February 19, 2010)

Contributed by Shares Investment

By Shares Investment

ST Engineering’s 4Q09 Net Profit Up 27%
Technology-based conglomerate ST Engineering has posted a 27% rise in net profit to $129.7m for 4Q09 ended Dec 31, 2009 as revenue increased 9% to $1.47b. For the full year 2009, net profit dipped 6.3% to $443.9m even though revenue rose 3.8% to $5.5b. A higher allowance for stock obsolescence in FY09 – $48.7m compared with $22.5m in FY08 – had been charged to the company’s profit from operations.
‘The group continued to secure contracts and replenish its book order which ended 2009 at $10.3b. Despite the ‘Great Recession’ in 2009, the group continued to invest in capacities and new capabilities across its global facilities, and added new customers,’ said Tan Pheng Hock, ST Engineering’s president and CEO. Out of that $10.3b, about $3.7b is expected to be delivered this year.The company expects to achieve a higher turnover and a comparable pretax profit figure for FY10 compared with FY09. A final dividend of $0.1028 per share has been proposed for the current quarter.

Sembcorp Marine Inks $130m Worth Of Deals
Sembcorp Marine has added strength to the general belief that the shipping industry is picking up by announcing major contracts worth $130m as well as the renewal of a long-term contract with Eitzen Group through its unit Sembawang Shipyard. The series of contracts ranges from life extension works of vessels, fire damage repair work to upgrading/repair projects from cruise ships.

STX Pan Returns To Profitability For 4Q09 On Rate Recovery
STX Pan Ocean, South Korea’s largest bulk-shipping line, posted a 4Q09 profit as Chinese demand for coal and iron-ore shipments boosted freight rates. Net income for the quarter was US$33m compared with a loss of US$95m a year earlier despite sales dropping 40% to US$1.05b.
The Baltic Dry Index (BDI), a measure of commodity-shipping rates, averaged 3,401 in the past quarter, almost triple the level a year earlier, as Chinese demand for raw materials rebounded from a slump caused by the global recession and the credit crunch. ‘STX Pan Ocean has benefited from a recovery in steel production,’ said Um Kyung A, a Seoul-based analyst at Shinyoung Securities. ‘Rates and STX Pan Ocean’s earnings will be probably both remain stable this year,’ the analyst said. The BDI will probably average between 3,000 and 3,500 this year, she added.

China Fishery Given Greenlight To Dual-List In Norway
China Fishery Group has clinched approval from the SGX and the Oslo bourse for its second listing in Norway. The fishing company – the first Singapore-listed firm to dual-list in Norway – will offer up to 172m new shares in a public offering, with share pricing to be announced at a later time over the next few weeks.
According to group managing director Ng Joo Siang, the dual listing on the Oslo bourse will enable company to attract Western institutional investors, some of whom have a policy of investing only in European listings. China Fishery is controlled by another Singapore-listed company Pacific Andes Resources Development, which is reported to be also eyeing a dual listing, though it has not specified any exchange.