Published August 15, 2008
Thai Beverage profit flat at 2.4b baht
By NISHA RAMCHANDANI
Email this article
Print article
Feedback
THAI Beverage Public, Thailand's largest brewer and distiller, has posted a flat profit of 2.39 billion baht (S$99.5 million) for the second quarter ended June 30.
Expanding into Europe: The company's Chang Beer was launched in the UK this year
Revenue for the quarter grew by 5 per cent from 23.15 billion baht in the previous corresponding quarter to 24.34 billion baht, mainly due to higher sales revenue from the spirits business.
Earnings per share (EPS) for 2Q08 came to 0.10 baht, up slightly from 0.09 baht previously.
An interim dividend amounting to 0.12 baht per share will be paid out on Sept 11.
For the first six months of the year, net profit dipped 5 per cent to 5.02 billion baht, while revenue increased by 4 per cent to 51.1 billion baht.
For 1H08, spirits contributed 56 per cent of sales, while beer accounted for 42 per cent and both the non-alcoholic beverage and industrial alcohol segments comprised one per cent each.
Sales revenue for beer dipped nearly 8 per cent in the first half due to weaker sales.
While sales volume for spirits fell, an increase in price to cover a 1.5 per cent excise tax helped to offset the smaller volume which resulted in a 9.8 per cent increase in sales revenue.
The company expanded its non-alcoholic beverage segment through the acquisition of assets from a Thai company for producing energy drinks and ready-to-drink coffee. The business started in 1Q08. As such, the segment registered sales of 365 million baht for 1H08.
Its industrial alcohol business saw a growth in sales to 757 million baht on the back of higher sales volume of ethanol. However, there was still a net loss due to the increase of idle costs as a result of lower production.
Thai Beverage also launched a new scotch whiskey this year in Thailand, 'specially designed with the Asian market in mind', said Richard Jones, head of investor relations.
Thai Beverage's Chang Beer was launched in the UK this year, while Mekhong beer was launched in Sweden in February. Thai Beverage has plans for further expansion into Europe.
Saturday, 16 August 2008
Published August 15, 2008
A good second quarter for rig-building giants
By VINCENT WEE
Email this article
Print article
Feedback
BASED on the numbers, the second-quarter results season ended on a high note for the three biggest locally listed players in the rig-building market. Keppel Offshore and Marine (KOM) parent Keppel Corp, Sembcorp Marine (Sembmarine) and Cosco Corp (Singapore) all reported solid revenue and earnings.
At a macro level, the riskiest undercurrent threatening the rig giants is cost inflation.
Keppel, Sembmarine and Cosco posted 16 per cent, 51 per cent and 60 per cent year-on-year earnings increases to $299.3 million, $128.3 million and $128.7 million respectively. KOM's $117 million gain was a 21 per cent increase over the previous year.
Revenue growth was also strong for two of the three offshore and marine (O&M) players. Sembmarine's turnover rose by a third to $1.39 billion and Cosco's doubled to $1.05 billion. Keppel's revenue rose just 8 per cent to $2.64 billion, although as an absolute figure this was about double that of the other two players. Stripped out, KOM's $1.8 billion revenue was almost flat versus the $1.7 billion in the previous corresponding period.
Order flow also remains good. Keppel reported a $13 billion net order book as at end-June with deliveries stretching out to 2012. Sembmarine said net orders stand at $9.6 billion with deliveries also extending till 2012. Cosco, meanwhile, said it has US$7.4 billion in orders for deliveries up to 2011.
But lurking just below the surface are several undercurrents that could drag down the high-flying rig giants. At a macro level, the riskiest of these is cost inflation. While the managements of all three groups tried to address these concerns to some degree, real guidance on margin and profit impact down the track was lacking.
Keppel simply pointed to its improved operating margins of 10 per cent, which it expected to maintain in the second half and noted that many of the jobs in its order pipeline are based on their proprietary designs which 'provide us with greater flexibility to meet customers' requirements, thereby enabling us to optimise on our yards' facility and manage tight supply chains'.
Sembmarine management said it locks in its steel requirements as soon as a contract is signed and the hedged price of the key raw material is factored into the contract price right from the outset. A key question from analysts at the results briefing that was not satisfactorily answered, however, was how they were able to hedge for orders meant to be delivered as far as four years forward.
Cosco, meanwhile, came clean with the most frank revelation of its year ahead. The China-based group acknowledged the 'unrelenting inflationary pressures and weak US dollar' it faces and revealed that it has hedged its steel needs only till the first half of next year. Cosco proposes to boost margins by 'keeping a tight grip on costs through operational efficiencies' and also factoring rising labour and steel costs in its pricing for future projects as well as diversifying its forex exposure by quoting future contracts in either yuan or euros as well.
The other question on the tip of all tongues was that of order cancellations in the light of recent cancellations at the big Korean yards. All three groups resolutely denied any problems on this account, universally citing their client base of 'reputable' companies.
Earlier reports have, however, said that the cancellation of the eight boxship order at the world's third-largest shipyard - Daewoo Shipbuilding and Marine Engineering - was from German container line company NSB.
Moving on to the individual level, each of the groups has niggling issues as well. Keppel has remained relatively the most trouble-free but a sudden eruption of client-related problems potentially worth about 200 million euros (S$419 million) at its Keppel Verolme yard in Holland has now cast a shadow over the second half.
The fate of a 140 million euro floating heavy lifter project for Norway's MPU Offshore Lift remains unknown after the company filed for bankruptcy in early July while just the week before this, Keppel announced a 65.4 million euro variation order dispute with Fred Olsen Energy unit Blackford Dolphin.
Sembmarine, meanwhile, continues to have the ongoing dispute with BNP Paribas over unauthorised transactions at its Jurong Shipyard unit hanging over its head. BNP's claim for US$50.7 million has not been recognised on the books and is disclosed as a contingent liability.
Cosco, already reeling from worries about further order cancellations after disclosing a US$202 million rig order cancellation from Red Flag, did itself no favours by announcing a sudden leadership change soon after releasing its results. Despite reassurances from management, concerns remain about both the motivation behind the change of leadership from Cosco stalwart Ji Hai Sheng to shipping line veteran Jiang Lijun and Mr Jiang's ability to hit the ground running on the shipyard operations. He was CEO of Cosco Shipping for six years before his current appointment.
Yesterday, Keppel stock closed 22 cents higher at $10.34, Sembmarine rose 14 cents to $3.84, while Cosco gained three cents to $2.35.
A good second quarter for rig-building giants
By VINCENT WEE
Email this article
Print article
Feedback
BASED on the numbers, the second-quarter results season ended on a high note for the three biggest locally listed players in the rig-building market. Keppel Offshore and Marine (KOM) parent Keppel Corp, Sembcorp Marine (Sembmarine) and Cosco Corp (Singapore) all reported solid revenue and earnings.
At a macro level, the riskiest undercurrent threatening the rig giants is cost inflation.
Keppel, Sembmarine and Cosco posted 16 per cent, 51 per cent and 60 per cent year-on-year earnings increases to $299.3 million, $128.3 million and $128.7 million respectively. KOM's $117 million gain was a 21 per cent increase over the previous year.
Revenue growth was also strong for two of the three offshore and marine (O&M) players. Sembmarine's turnover rose by a third to $1.39 billion and Cosco's doubled to $1.05 billion. Keppel's revenue rose just 8 per cent to $2.64 billion, although as an absolute figure this was about double that of the other two players. Stripped out, KOM's $1.8 billion revenue was almost flat versus the $1.7 billion in the previous corresponding period.
Order flow also remains good. Keppel reported a $13 billion net order book as at end-June with deliveries stretching out to 2012. Sembmarine said net orders stand at $9.6 billion with deliveries also extending till 2012. Cosco, meanwhile, said it has US$7.4 billion in orders for deliveries up to 2011.
But lurking just below the surface are several undercurrents that could drag down the high-flying rig giants. At a macro level, the riskiest of these is cost inflation. While the managements of all three groups tried to address these concerns to some degree, real guidance on margin and profit impact down the track was lacking.
Keppel simply pointed to its improved operating margins of 10 per cent, which it expected to maintain in the second half and noted that many of the jobs in its order pipeline are based on their proprietary designs which 'provide us with greater flexibility to meet customers' requirements, thereby enabling us to optimise on our yards' facility and manage tight supply chains'.
Sembmarine management said it locks in its steel requirements as soon as a contract is signed and the hedged price of the key raw material is factored into the contract price right from the outset. A key question from analysts at the results briefing that was not satisfactorily answered, however, was how they were able to hedge for orders meant to be delivered as far as four years forward.
Cosco, meanwhile, came clean with the most frank revelation of its year ahead. The China-based group acknowledged the 'unrelenting inflationary pressures and weak US dollar' it faces and revealed that it has hedged its steel needs only till the first half of next year. Cosco proposes to boost margins by 'keeping a tight grip on costs through operational efficiencies' and also factoring rising labour and steel costs in its pricing for future projects as well as diversifying its forex exposure by quoting future contracts in either yuan or euros as well.
The other question on the tip of all tongues was that of order cancellations in the light of recent cancellations at the big Korean yards. All three groups resolutely denied any problems on this account, universally citing their client base of 'reputable' companies.
Earlier reports have, however, said that the cancellation of the eight boxship order at the world's third-largest shipyard - Daewoo Shipbuilding and Marine Engineering - was from German container line company NSB.
Moving on to the individual level, each of the groups has niggling issues as well. Keppel has remained relatively the most trouble-free but a sudden eruption of client-related problems potentially worth about 200 million euros (S$419 million) at its Keppel Verolme yard in Holland has now cast a shadow over the second half.
The fate of a 140 million euro floating heavy lifter project for Norway's MPU Offshore Lift remains unknown after the company filed for bankruptcy in early July while just the week before this, Keppel announced a 65.4 million euro variation order dispute with Fred Olsen Energy unit Blackford Dolphin.
Sembmarine, meanwhile, continues to have the ongoing dispute with BNP Paribas over unauthorised transactions at its Jurong Shipyard unit hanging over its head. BNP's claim for US$50.7 million has not been recognised on the books and is disclosed as a contingent liability.
Cosco, already reeling from worries about further order cancellations after disclosing a US$202 million rig order cancellation from Red Flag, did itself no favours by announcing a sudden leadership change soon after releasing its results. Despite reassurances from management, concerns remain about both the motivation behind the change of leadership from Cosco stalwart Ji Hai Sheng to shipping line veteran Jiang Lijun and Mr Jiang's ability to hit the ground running on the shipyard operations. He was CEO of Cosco Shipping for six years before his current appointment.
Yesterday, Keppel stock closed 22 cents higher at $10.34, Sembmarine rose 14 cents to $3.84, while Cosco gained three cents to $2.35.
Published August 15, 2008
Weak £, absence of tax credits pull down CDL Q2 profit 15.1%
Group posts higher profit from property development, rental properties in Q2, H1
By KALPANA RASHIWALA
Email this article
Print article
Feedback
AMID a quieter property market, City Developments (CDL) yesterday posted a higher profit from property development and rental properties in second quarter and first half.
Attracting buyers: Artist's impression of South Beach, a CDL project being developed at Beach Road. About the project, Mr Kwek says: 'We already have people knocking on our door'
But the translation of earnings by its London-listed Millennium & Copthorne Hotels (M&C) at a weakening exchange rate of the pound against the Singapore dollar, plus the absence of substantial one-off tax credits enjoyed by M&C in Q2 last year, resulted in a 15.1 per cent year-on-year drop in Q2 net earnings to $165.2 million.
For the first half, CDL managed a 3 per cent year-on-year increase in net earnings to $330.1 million.
The first-half performance was 'better than the competition if you strip off their divestment gains and fair-value gains on investment properties', CDL managing director Kwek Leng Joo said at a results briefing yesterday.
Related links:
Click here for CDL's news release
Financial results
Presentation slides
CDL's bottom line is not affected by fair-value gains - or losses - on investment properties, since after adopting Financial Reporting Standard (FRS) 40, the group has continued to state these assets at cost less accumulated depreciation and impairment losses. Most other Singapore-listed property groups state investment properties at fair value, as allowed under FRS 40.
CDL also said yesterday it will enter into Singapore's first Islamic Sukuk-Ijarah unsecured financing arrangement, through a proposed $1 billion Islamic multi-currency medium-term notes programme, to tap new markets and investors. This product will provide the group with a 'diversified, alternative and non-traditional financing stream to further enhance its war chest', CDL said.
CIMB is arranging the facility.
CDL executive chairman Kwek Leng Beng told reporters: 'I have been approached by a lot of people in the Middle East to do an Islamic fund.'
On the Singapore residential front, CDL said it plans to launch 400 private homes here in H2 this year, subject to market conditions.
These homes comprise 200 units in the second phase of Livia, a 99-year leasehold condo at Pasir Ris, and 100 units each at The Arte at Thomson and The Quayside Collection at Sentosa Cove.
The group said it has achieved average prices of $1,500 to $1,600 per sq ft (psf) for Shelford Suites and $650-$670 psf for the first phase of Livia.
It also said its diversified land bank - comprising mass-market, mid-tier and high-end sites, amassed over the years at relatively low cost - allows it tailor launches to meet changes in market demands and conditions.
'Despite today's high development cost, the group has the option to price its launches competitively while maintaining healthy profit margins, or the option of waiting for the appropriate time to launch so as to maximise profits,' CDL said.
It also said it has begun construction of the hotel and residential components of The Quayside Collection at Sentosa Cove. However, it is under no pressure to launch the project, especially since its land cost was low.
'When the group decides to launch, it can book in more profits based on the stage of construction at the time of sales,' it said.
On the South Beach project being developed by a CDL-led consortium, Mr Kwek said: 'We already have people knocking on our door. Some of them are interested to buy one block, some are interested to buy one hotel, some interested to manage. We are in no hurry. Our priority is to look at the design and define it much better, and to how to value-engineer to bring the cost down.'
The group said it is confident of remaining profitable in the next 12 months.
Pre-tax profit from property development rose 10.5 per cent year on year for Q2 ended June 30 to $147.8 million. For the first half, it increased 27.4 per cent to $302.9 million.
Pre-tax earnings from rental properties - the group is a major office landlord and owns several malls - rose 76 per cent to $24.5 million in Q2 and 85 per cent to $49.6 million in H1.
However, pre-tax earnings from hotel operations dipped 15.4 per cent to $74 million in Q2 and 2.6 per cent to $126.1 million in H1, due mainly to the weakening of the pound and US dollar against the Singapore dollar.
Group revenue edged up 0.7 per cent to $780.8 million in Q2 but dipped 0.3 per cent to $1.5 billion in H1.
Weak £, absence of tax credits pull down CDL Q2 profit 15.1%
Group posts higher profit from property development, rental properties in Q2, H1
By KALPANA RASHIWALA
Email this article
Print article
Feedback
AMID a quieter property market, City Developments (CDL) yesterday posted a higher profit from property development and rental properties in second quarter and first half.
Attracting buyers: Artist's impression of South Beach, a CDL project being developed at Beach Road. About the project, Mr Kwek says: 'We already have people knocking on our door'
But the translation of earnings by its London-listed Millennium & Copthorne Hotels (M&C) at a weakening exchange rate of the pound against the Singapore dollar, plus the absence of substantial one-off tax credits enjoyed by M&C in Q2 last year, resulted in a 15.1 per cent year-on-year drop in Q2 net earnings to $165.2 million.
For the first half, CDL managed a 3 per cent year-on-year increase in net earnings to $330.1 million.
The first-half performance was 'better than the competition if you strip off their divestment gains and fair-value gains on investment properties', CDL managing director Kwek Leng Joo said at a results briefing yesterday.
Related links:
Click here for CDL's news release
Financial results
Presentation slides
CDL's bottom line is not affected by fair-value gains - or losses - on investment properties, since after adopting Financial Reporting Standard (FRS) 40, the group has continued to state these assets at cost less accumulated depreciation and impairment losses. Most other Singapore-listed property groups state investment properties at fair value, as allowed under FRS 40.
CDL also said yesterday it will enter into Singapore's first Islamic Sukuk-Ijarah unsecured financing arrangement, through a proposed $1 billion Islamic multi-currency medium-term notes programme, to tap new markets and investors. This product will provide the group with a 'diversified, alternative and non-traditional financing stream to further enhance its war chest', CDL said.
CIMB is arranging the facility.
CDL executive chairman Kwek Leng Beng told reporters: 'I have been approached by a lot of people in the Middle East to do an Islamic fund.'
On the Singapore residential front, CDL said it plans to launch 400 private homes here in H2 this year, subject to market conditions.
These homes comprise 200 units in the second phase of Livia, a 99-year leasehold condo at Pasir Ris, and 100 units each at The Arte at Thomson and The Quayside Collection at Sentosa Cove.
The group said it has achieved average prices of $1,500 to $1,600 per sq ft (psf) for Shelford Suites and $650-$670 psf for the first phase of Livia.
It also said its diversified land bank - comprising mass-market, mid-tier and high-end sites, amassed over the years at relatively low cost - allows it tailor launches to meet changes in market demands and conditions.
'Despite today's high development cost, the group has the option to price its launches competitively while maintaining healthy profit margins, or the option of waiting for the appropriate time to launch so as to maximise profits,' CDL said.
It also said it has begun construction of the hotel and residential components of The Quayside Collection at Sentosa Cove. However, it is under no pressure to launch the project, especially since its land cost was low.
'When the group decides to launch, it can book in more profits based on the stage of construction at the time of sales,' it said.
On the South Beach project being developed by a CDL-led consortium, Mr Kwek said: 'We already have people knocking on our door. Some of them are interested to buy one block, some are interested to buy one hotel, some interested to manage. We are in no hurry. Our priority is to look at the design and define it much better, and to how to value-engineer to bring the cost down.'
The group said it is confident of remaining profitable in the next 12 months.
Pre-tax profit from property development rose 10.5 per cent year on year for Q2 ended June 30 to $147.8 million. For the first half, it increased 27.4 per cent to $302.9 million.
Pre-tax earnings from rental properties - the group is a major office landlord and owns several malls - rose 76 per cent to $24.5 million in Q2 and 85 per cent to $49.6 million in H1.
However, pre-tax earnings from hotel operations dipped 15.4 per cent to $74 million in Q2 and 2.6 per cent to $126.1 million in H1, due mainly to the weakening of the pound and US dollar against the Singapore dollar.
Group revenue edged up 0.7 per cent to $780.8 million in Q2 but dipped 0.3 per cent to $1.5 billion in H1.
Subscribe to:
Posts (Atom)
