Reports » Singapore

Singapore stock market and companies daily report (Sembcorp Marine, Singapore Press Hldgs, ARA Asset Management, COSCO Corporation) (February 23, 2010)

Contributed by Shares Investment

By Shares Investment

Sembcorp Marine Nets Record Profit
Sembcorp Marine managed to ride through last year’s downturn to post a record high net profit of $700.1m, a 62.8% rise on-year as higher revenue recognition from completed rigs rolled in. More than two-fifths of the net earnings came from 4Q. Turnover for the year ended Dec 31, 2009 rose 13% to $5.72b with the rig-building sector especially registering an increase of 28% to $3.63b due to progressive recognition of rig building projects.
The company is proposing a total final dividend of $0.10 per share comprising a final ordinary dividend of $0.06 plus a $0.04 special dividend for a total FY09 payout of $0.15 per share. Looking ahead, the company has a net order book of $5.5b with completions and deliveries stretching until early 2012, including the $1.25b in new orders secured in FY09.

SPH To Issue $300m Fixed-Rate Notes
Singapore Press Hldgs has announced it will issue $300m of fixed-rate notes due in 2015. The issue is the first part of a new $1b multi-currency medium-term note programme set up by the company. Net proceeds will be used as general working capital, for capital expenditure and corporate requirements such as acquisitions and investments, and/or refinancing existing borrowings. SPH is the latest large Singapore company to tap the local currency bond market following Sembcorp Marine’s issue of $2b multi-currency programme in January.

ARA’s 4Q09 Net Profit Up 47%, Proposes Bonus Issue
ARA Asset Management has posted an improved earnings for 4Q09 ended Dec 31, up 47% on-year to $14.1m. This was driven by a 48% increase in revenue to $26.9m. The top line grew as ARA collected more management fees, acquisition and performance fees and other forms of income. For instance, the newly set up ARA Harmony Fund, which owns Suntec Singapore International Convention & Exhibition Centre, brought in management fees for the group.
ARA has proposed a final cash dividend of $0.025 per share and a 1-for-5 bonus issue of up to 116.4m new ordinary shares. The company is confident that it can continue paying this amount to shareholders in FY10 and added that it is looking to set up funds in a few areas, namely the aged and healthcare sector mainly in Japan and Australia and hospitality sector. In addition, ARA plans to raise more capital for the next franchise of the ARA Asia Dragon Fund.

COSCO Corp’s FY09 Net Profit Down 64%
COSCO Corporation’s net profit tumbled 64% to $110m for FY09 ended Dec 31, 2009 as operating costs swelled and core operations weakened. Turnover slid 17% to $2.9b as the global economic downturn resulted in lower revenue from the ship builder’s various business segments. Earnings per share fell to $0.0492 from $0.1351 in FY08.
Turnover from shipyard operations was 13.9% lower at $2.8b as ship repair and conversion projects were hit by the challenging economic environment. Turnover from dry bulk shipping business plummeted 48.4% to $132.9m as expired contracts were leased on short-term basis at lower rates during the year. The shipyard business accounted for about 95 of company’s turnover while dry bulk shipping and shipping agency and others accounted for the remainder. Gross profit fell 52.8% from $630.1m to $297.6m. As at Dec 31, the group had an order book of US$5.6b with progressive delivery up to 2012.