Reports » Singapore

Singapore stock market and companies daily report (Singapore Airlines, M1, ST Engrg) (September 07, 2012)

Contributed by Shares Investment

Singapore Airlines To Invest $50m On Net, Mobile Services
Singapore Airlines (SIA), the flag-carrier airline announced a partnership with connectivity provider OnAir, to progressively roll out Internet and mobile data services to customers across all of SIA’s long-haul Airbus A380-800, A340-500 and Boeing 777-300ER aircraft over the next two years. Services will be offered on routes on which the equipped aircraft are deployed, subject to regulatory approval from individual countries. The service upgrade enables travellers to surf the Internet, send and receive e-mail messages on smartphones and laptops, and send and receive SMS text messages with GSM-compatible mobile phones. However, the service is not free and promotional prices will last until 30 November 2012. In a joint promotion, SingTel mobile subscribers will enjoy discounted roaming rates which will last until 31 March 2013. Tan Pee Teck, senior vice-president product and services said: “As our customers’ preferences towards entertainment and connectivity options change over time, so must we.”
Significance: As SIA faces stiff competition from other major rival airlines in the industry and fuel cost concerns, it appears that it is working towards providing more value-added in-flight entertainment to form another stream of revenue and technologically differentiates itself from its competitors.

M1 To Launch 4G Price Plan And Islandwide Coverage Next Weekend
Next Saturday, M1 will be the first telco in South-east Asia to launch 4G price plans with nationwide coverage and at the same time cut data bundle sizes for 3G price plans. Making it the second telco after SingTel to cease the generous practice of bundling a generous 12 gigabytes with most of its 3G smartphone price plans – StarHub will be the last telco to hold out on doing away with it and last to launch 4G services. The future direction the industry is taking is quite clear at M1, and the launch of 4G networks has been used by both SingTel and M1 as an occasion to nudge data prices in a more commercially viable direction. Patrick Scodeller, M1’s chief technical officer, does not expect a sea of changes in consumer behaviour even if 4G speeds make downloading data less painful and said: “[Data Usage] might be a little more, but it won’t be a huge quantum leap.”
Significance: With the much anticipated launch of the rumoured iPhone 5 (which is expected to be 4G enabled) at the 12 September event, M1 has timed the 4G release perfectly to position itself for the hype. However, due to the unavailability of 4G coverage on the MRTs which is still pending on-going coordination, it might take some time before we see a significant shift from 3G to 4G data usage.

Marine Unit Of Singapore Technologies Engineering Clinched $179m Contracts
Singapore Technologies Engineering (ST Engrg), through its subsidiary, VT Halter Marine has secured shipbuilding and ship-repair contracts worth $179 million. VT Halter Marine will build two offshore support vessels (OSVs) for oil-field services provider Hornbeck Offshore Services at its yards in Moss Point Marine and Halter Moss Point in Mississippi, United States. This newly ordered pair of OSVs were options that Hornbeck exercised from its previous contract signed back in last November when it awarded VT Halter a contract to build eight OSVs worth $441 million, with an option for 24 identical ones. Ng Sing Chan, president of ST Engrg’s Marine Unit said: “We shall continue to ride on the demand for OSVs and pursue this segment with our track record as a shipbuilder and repairer of choice for such vessels.”
Significance: The delivery of the two OSVs contract worth $179 million which will be delivered in 4Q14 and 1Q15 respectively, coupled with the marine division’s $68 million contract wins in ship-repair jobs in the past two months, will boost its revenue stream going forward.