Reports » Singapore

Singapore stock market and companies daily report (Singapore Shipping Corporation, GMG Global, Stamford Land ) (July 30, 2010)

Contributed by Shares Investment

By Shares Investment

SSC’s 1Q10 Profit Dives 66%

Singapore Shipping Corporation (SSC) recorded a 66% dive in net profit to $450,000 for the first quarter ended June 30 despite a surge in revenue. Revenue surge 51.5% to about $4.66m, mainly contributed by MV Boheme – a US$50m pure car truck carrier it purchased in April – was partially offset by the loss of revenue from a vessel disposed in December last year. While SSC saw a 179.6% rise in net profit to $1.3m from its ship owning and management segment, it saw a sharp 99.4%, or about $1.02m, drop in finance income to just $6,000. Additionally, the group recorded interest expense on bank borrowing of $188,000 and $292,000 upfront fee on bank borrowing. It funded the purchase of MV Boheme via internal resources and bank borrowings.

Significance: Despite lower profit achieved, Co’s principal ship-owning business will continue to perform well as the vessels are on long-term charters to blue chip operators.

GMG Posts Q2 Bottomline Of $9.5m

Natural rubber producer GMG Global (GMG) generated a net earnings of $9.5m in 2Q10 compared to a net loss of $3.8m in 2Q09. Revenue for 2Q10 was $80.7m from 19,069 tonnes sold, 109.5% higher compared to $38.5m from 18,342 tonnes. Also, the price of rubber was higher in 2Q10, averaging $4,233 a tonne, versus $2,101 in 2Q09. GMG Global says that it is on track to increasing tonnage output by double digits and remains positive on the fundamentals of the business and longer-term prospects for natural rubber. Current chairman Xian Ming will become CEO and executive director. Zhang Zenggen will become non-executive chairman in place of Xian. Zhang is an executive director and chief executive of Sinochem International Corporation, a Chinese state-owned enterprise that is China’s largest rubber player. Sinochem has a 51% stake in GMG Global.

Significance: Natural rubber may average $4,500 a metric ton next year, due to heavy rainfall in southern Thailand, the largest producer and insufficient inventory levels in China, the biggest consumer. GMG therefore, may benefit from the aforesaid disruptions.

Fair-Value Gains Lift Stamford Land Q1 Profit

Property group Stamford Land lifted its earnings more than 10 times to $38m, from $3.2m a year earlier, for the first quarter ended June 30. This was despite flat topline revenue of $52m. The big lift came from $47.7m gains on fair value of investment properties. This was partially offset by a $11.5m surge in deferred tax expense. Stamford Land’s hotel business – mainly in Australasia – enjoyed a 25% rise in operating income to $6.9m during the quarter, thanks to higher occupancy rates and a stronger Australian dollar. ‘Rental income from Dynons Plaza will accrue from Jul-10 after the end of the rent-free incentive period. However, interest of approximately $1.0m due to this property was expensed off during the first quarter,’ the group said of its Perth commercial development. Insiders reckon its value could rise if Stamford Land decides to sell it.

Significance: Stamford Land’s cash and cash equivalents stand at $89.7m. Its Stamford Residences & Reynell Terraces in Sydney is progressing well and will contribute significantly to the group’s profit when completed in FY12.

This article is contributed by Shares Investment. Visit Sharesinv.com for the latest Singapore, Malaysia and China stock market news and reports.