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Reports Singapore

Singapore stock market and companies daily report (City Developments, Ezra Hldgs, Technics O&G) (July 11, 2014)

July 11, 2014, Friday, 05:18 GMT | 01:18 EST | 09:48 IST | 12:18 SGT
Contributed by Shares Investment

City Developments proposed for the acquisition of 30 percent interest in Quantum for a purchase consideration of $14.3 million in cash. Quantum is the principal operating subsidiary of Millennium & Copthorne Hotels New Zealand (MCK) which owns or leases seven hotels. When completed, this will conclude the 20-year business relationship between MCK and the Maori Trustee. City Developments already owned interest in Quantum prior to the proposed acquisition.

Ezra Holdings saw a 26.8 percent growth in revenue to US$402.1 million for the third quarter ended 31 May 2014, that was mainly attributable to a US$81.9 million increase in contribution from its subsea services division. The multiple-fold gain in gross profit (3Q14: US$65.4 million, 3Q13: US$2.2 million) were mostly offset by a sharp drop of US$63 million in other income, mainly due to the absence of a one-off gain on disposal of investment in 3Q13. Nevertheless, earnings for the quarter went up 15.7 percent to US$8.3 million. For the nine-month period, revenue gained 23.7 percent to US$1 billion, while earnings sank 21.5 percent to US$34.2 million.

Technics Oil and Gas has acquired an 80 percent stake in Marinelift Testing & Supply and Rigging & Marine Services for a consideration of  $16.5 million. The acquisition will be complementary and ancillary to the group’s existing core business and presents an opportunity for the group to acquire a profitable company with a viable business model accompanied by a good management team. 30 percent of the acquisition will be paid via cash with the remaining fulfilled by the issuing of new ordinary and treasury shares, thereby increasing total issued and paid up capital of the company from $65.8 million to $77.3 million.

Triyards Holdings’ 3Q14 revenue fell 15.9 percent year-on-year to US$55.3 million, as a result of lower revenue recognised for one of the self-elevating units from BH450 series, of which sea trials were conducted at the end of 3Q14. However, partially offset by higher revenue recognised from one of the SEUs from BH335 series, gross profit fell 1.2 percent year-on-year to US$12.5 million. Consequently, as a result of higher financial costs incurred, net profit fell 16.6 percent year-on-year to US$6.3 million.