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Singapore stock market and companies daily report (Eu Yan Sang, Noble Group, Sembcorp) (February 07, 2012)

Contributed by Shares Investment

Eu Yan Sang’s 2Q12 Earnings Sank Into The Red On Investment Write-Off
Eu Yan Sang International’s (EYS) earnings sank into the red for the second quarter ended December 2011, recording a loss of $2.8 million compared to a gain of $4.1 million in 2Q11. This was due to an investment write-off in Australian retailer Healthzone, which amounted to an $8.8 million of impairment charges from investment and related derivatives. Revenue for the quarter edged up 9% to $69.8 million from $64 million, with more than 96% of its sales coming from overseas. For the first six-month period, the top line increased 7.3% to $130.5 million while the bottom line tumbled 79% to $1.7 million.
Significance: With Healthzone being placed into receivership, EYS has made a A$5 million bid for certain businesses. The crown jewels of the pending deal are Healthzone’s franchising business and Australian distribution network, which would represent a new opportunities for EYS.

Noble Appoints Former Goldman Asia President As CEO
Noble Group has appointed Yusuf Alireza – the former co-president of Asia, excluding Japan, for Goldman Sachs – as chief executive officer (CEO). The appointment will take effect from 16 April, with its founder Richard Elman stepping down as acting CEO but remaining as chairman. Earlier in November, the commodity trading company reported its first quarterly loss in more than a decade and saw the unexpected resignation of its then-CEO Ricardo Leiman. That marked the second change in CEO in two years, and followed the departure of two senior executives – previous executive chairman Toby Brown and chief financial officer Stephen J Marzo.
Significance: CIMB remarked that the move is ‘a step in the right direction’ as it eases concerns over succession planning. Reportedly, a source familiar with Noble’s planned spinning-off of its agriculture business has noted that the listing is likely to happen in the first half of this year.

SembMarine Wins US$792.5m Brazilian Contract
Sembcorp Marine has won a US$792.5 million contract from Sete Brasil, marking its first drillship construction for Brazil. According to Wong Weng Sun, president and CEO of the company, this contract is believed to be the first of many orders from the Petrobras-backed rig-owner in view of its ambitious drillship expansion programme to develop the giant Brazilian pre-oil fields. Construction of the drillship will be the first project at its new Brazilian yard Estaleiro Jurong Aracruz, with delivery scheduled no later than second quarter of 2015.
Significance: Talks are rife that Brazilian state oil company Petrobras has approved a 21-rig tender to Sete Brasil, hence the stage is set for more deepwater rigs and drillship construction contracts to be awarded in the coming months. Following the latest win, CIMB revised its estimates and noted that order wins from Petrobras will be in the range of US$8 billion.

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