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Singapore stock market and companies daily report (Wilmar And Noble, Genting Singapore, Keppel REIT) (February 22, 2013)

Contributed by Shares Investment

Wilmar And Noble Forms Strategic Joint Venture
Noble Group and Wilmar International jointly announced the sale by Noble Resources, of a 53.74 percent equity interest in Noble Plantations to Newbloom, a wholly-owned subsidiary of Wilmar. Upon completion of the sale, Noble Plantations, which owns a majority interest in PT Henrison Inti Persada and in turn owns 22,953 hectares of land in Papua, Indonesia, will be 53.74 percent owned by Wilmar and 46.27 percent owned by Noble. Both parties have agreed to form a Papua focused, strategic joint venture in order to develop and operate palm projects to produce and sell crude palm oil and its by-products. Additionally, the joint venture looks to explore further palm oil opportunities in the Papua region to add to the existing portfolio. Separately, Wilmar announced a 5 percent decline in earnings for 4Q12 to US$476.8 million as its plantations and palm oil mills were affected by lower crude palm oil prices although most key segments delivered higher profit.
Significance: The demand for palm oil would likely rise with China and the Asian region continuing to thrive in the coming year. With this strategic partnership, both companies will be able to ride on each other’s expertise to benefit from the palm plantation business.

Genting Reports 50% Fall In 4Q12 Profit
Genting Singapore posted a 50 percent slump in earnings to $133.2 million for its fourth quarter ended 31 December 2012 from 265.7 million in 4Q11, on the back of a marginal 1 percent rise in revenue to $792 million. Gaming revenue dipped 2.9 percent to $627 million although the business volume in the premium players segment was up 56 percent year-on-year as this improvement was offset by a weaker win percentage in the premium players business. The Universal Studios Singapore continued to attract crowds with 11,100 people visiting per day in 4Q12 with average spending of $86. Its Marine Life park also attracted 7,100 visitors per day in its first 40 days of operation. For the full year period, revenue was down 9 percent to $2.95 billion while earnings decreased 43 percent to $587.5 million.
Significance: Notably, Genting’s core earnings beat analyst expectations despite dropping 6 percent to $369.3 million due to operating costs incurred the Marine Life Park. As major capital expenditure for its integrated resort tails off in 1H13, and with the attractions business more settled, it is expected to produce a steady cash flow going forward.

Keppel REIT Launches Placement To Raise $53.2m
Keppel REIT is proposing to undertake a placement of 40 million new units to institutional and other investors at an issue price of $1.33 per new unit, to raise gross proceeds of $53.2 million. The new units will be issued at a 2.3 percent premium to its adjusted net asset value of $1.30 as of 31 December 2012. Deducting the underwriting and selling commission and other estimated fees and expenses, the company will raise $52.3 million, which will be used to repay outstanding borrowings, general corporate and working capital purposes. The placement exercise will increase the total number of units to improve the trading liquidity and the company’s aggregate leverage.
Significance: Notably, on a pro forma basis, Keppel REIT’s leverage as at 31 December 2012 will be reduced from 42.9 percent to approximately 42.1 percent.