by OCBC INVESTMENT RESEARCH (11 Nov)
STELLAR performance despite challenging landscape: Noble Group impressed with a stellar set of Q3 2008 results. Net profit surged 145.3 per cent y-o-y to US$148.8 million despite a general softening in demand for commodities.
This was achieved on the back of a 66.3 per cent y-o-y growth in revenue to US$9.4 billion. Excluding one-off gains, net profit would still have risen by 115.6 per cent to US$130.8 million. The group's results were commendable except for losses recorded by the metals, minerals & ores (MMO) segment.
MMO reported a loss of US$8.8 million at the gross level due to a sudden and sharp fall in demand for steel, aluminium and iron ore. Looking ahead, this segment should no longer drag on group's profitability in Q4 2008 as residual steel and iron ore stock account for less than 2 per cent of the group's inventories.
The strong showing from its other segments was more than sufficient to offset losses incurred by the MMO segment, proving the merits of Noble's diversification across various asset classes. Overall gross profit margin improved to 4.01 per cent (from 3.61 per cent in Q3 2007), while net profit margin strengthened to 1.6 per cent (from 1.1 per cent in Q3 2007).
Noble quashed concerns over its funding profile by reporting an increase in its cash levels to US$1.1 billion in September (versus US$0.8 billion in June). Easing commodity prices helped to ease working capital requirements and strengthened its cash position.
We note that only 30 per cent or US$1 billion of the group's debt will mature within the next 18 months, and this can easily be repaid using its current cash holdings. The remaining 70 per cent of its debt will mature in 18 months to seven years, and hence poses no immediate concerns to the group. Furthermore, net gearing after adjusting for its readily marketable inventories stands at a modest 4 per cent.
Recommendation: We have raised our FY2008 earnings estimate by 18 per cent following Noble's strong Q3 2008 showing. Our valuation parameter, however, has been trimmed to 10 times (from 12 times) to reflect the risk of a prolonged recession and credit crunch, which could hurt demand for commodities.
-Research Report by OCBC INVESTMENT RESEARCH (11 Nov)
Showing posts with label Company Results. Show all posts
Showing posts with label Company Results. Show all posts
Wednesday, November 12, 2008
Tuesday, October 21, 2008
SPC Q3 profit plunges 99%
SINGAPORE - Singapore Petroleum Co on Tuesday reported a 99 per cent fall in quarterly net profit and said it expected to continue being affected by the global financial crisis and oil price volatility.
The oil refining and marketing firm said it earned S$619,000 (US$$418,000) in the three months to the end of September, compared with S$98.1 million a year earlier.
According to Reuters calculations, refining margins in Singapore for complex units cracking benchmark Dubai crude made an average of US$5.80 a barrel in the third quarter, historically decent but below the US$7.18 average of the past year.
Margins rose in September as benchmark US crude oil prices plunged from a record near-US$150 a barrel in July to around US$100 by the end of the quarter.
Shares in SPC fell 29 per cent in the quarter, versus a 20 per cent fall in the benchmark Singapore index in the same period.
Keppel Corp, the world's number-one offshore oil drilling rigs builder, owns 45 per cent of SPC, which equally shares ownership of a 285,000 barrels a day refinery in Singapore with US oil major Chevron.
The oil refining and marketing firm said it earned S$619,000 (US$$418,000) in the three months to the end of September, compared with S$98.1 million a year earlier.
According to Reuters calculations, refining margins in Singapore for complex units cracking benchmark Dubai crude made an average of US$5.80 a barrel in the third quarter, historically decent but below the US$7.18 average of the past year.
Margins rose in September as benchmark US crude oil prices plunged from a record near-US$150 a barrel in July to around US$100 by the end of the quarter.
Shares in SPC fell 29 per cent in the quarter, versus a 20 per cent fall in the benchmark Singapore index in the same period.
Keppel Corp, the world's number-one offshore oil drilling rigs builder, owns 45 per cent of SPC, which equally shares ownership of a 285,000 barrels a day refinery in Singapore with US oil major Chevron.
Tuesday, August 5, 2008
Cosco Q2 profit up 60% to $128.7m
Turnover doubles to $1.05b; first time it reports quarterly revenue above $1b
By VINCENT WEE
COSCO Corp (Singapore) continued its good form in the second quarter, with a 60 per cent year-on-year rise in profit to $128.7 million on a doubling of turnover to $1.05 billion from $512.3 million. It was also the first time that the group reported quarterly revenue of more than $1 billion.
First-half turnover also doubled - to $1.76 billion from $868.1 million. And profit rose 74 per cent to $212.6 million.
Growth was good across all business segments and benefited from the expansion of Cosco's facilities and resulting increased capacity. In the dominant (93 per cent) ship repair, shipbuilding and marine engineering business, turnover rose 112 per cent to $978.2 million, while the dry bulk shipping business saw steady 38 per cent growth to $61.1 million. Earnings per share rose from 3.60 cents to 5.75 cents.
'Our growing order book is well-supported by our continuing efforts to expand our capacity,' said vice-chairman and president Ji Hai Sheng. 'Our joint venture with the Port Authority of Lianyungang, Jiangsu has contributed positively to shiprepair and conversion earnings since Q2FY08. We also look forward to a further increase in contributions from our two new Zhoushan dry docks with total capacity of 380,000 dwt as they begin their first full-year contributions in FY2008.'
First-half turnover also doubled - to $1.76 billion from $868.1 million. And profit rose 74 per cent to $212.6 million.
Growth was good across all business segments and benefited from the expansion of Cosco's facilities and resulting increased capacity. In the dominant (93 per cent) ship repair, shipbuilding and marine engineering business, turnover rose 112 per cent to $978.2 million, while the dry bulk shipping business saw steady 38 per cent growth to $61.1 million. Earnings per share rose from 3.60 cents to 5.75 cents.
'Our growing order book is well-supported by our continuing efforts to expand our capacity,' said vice-chairman and president Ji Hai Sheng. 'Our joint venture with the Port Authority of Lianyungang, Jiangsu has contributed positively to shiprepair and conversion earnings since Q2FY08. We also look forward to a further increase in contributions from our two new Zhoushan dry docks with total capacity of 380,000 dwt as they begin their first full-year contributions in FY2008.'
Mr Ji reassured investors that there have been no order cancellations and is confident that there will not be any as Cosco's customers are reputable
By VINCENT WEE
COSCO Corp (Singapore) continued its good form in the second quarter, with a 60 per cent year-on-year rise in profit to $128.7 million on a doubling of turnover to $1.05 billion from $512.3 million. It was also the first time that the group reported quarterly revenue of more than $1 billion.
First-half turnover also doubled - to $1.76 billion from $868.1 million. And profit rose 74 per cent to $212.6 million.
Growth was good across all business segments and benefited from the expansion of Cosco's facilities and resulting increased capacity. In the dominant (93 per cent) ship repair, shipbuilding and marine engineering business, turnover rose 112 per cent to $978.2 million, while the dry bulk shipping business saw steady 38 per cent growth to $61.1 million. Earnings per share rose from 3.60 cents to 5.75 cents.
'Our growing order book is well-supported by our continuing efforts to expand our capacity,' said vice-chairman and president Ji Hai Sheng. 'Our joint venture with the Port Authority of Lianyungang, Jiangsu has contributed positively to shiprepair and conversion earnings since Q2FY08. We also look forward to a further increase in contributions from our two new Zhoushan dry docks with total capacity of 380,000 dwt as they begin their first full-year contributions in FY2008.'
First-half turnover also doubled - to $1.76 billion from $868.1 million. And profit rose 74 per cent to $212.6 million.
Growth was good across all business segments and benefited from the expansion of Cosco's facilities and resulting increased capacity. In the dominant (93 per cent) ship repair, shipbuilding and marine engineering business, turnover rose 112 per cent to $978.2 million, while the dry bulk shipping business saw steady 38 per cent growth to $61.1 million. Earnings per share rose from 3.60 cents to 5.75 cents.
'Our growing order book is well-supported by our continuing efforts to expand our capacity,' said vice-chairman and president Ji Hai Sheng. 'Our joint venture with the Port Authority of Lianyungang, Jiangsu has contributed positively to shiprepair and conversion earnings since Q2FY08. We also look forward to a further increase in contributions from our two new Zhoushan dry docks with total capacity of 380,000 dwt as they begin their first full-year contributions in FY2008.'
Mr Ji reassured investors that there have been no order cancellations and is confident that there will not be any as Cosco's customers are reputable
Wednesday, July 30, 2008
SPC Q2 revenue leaps 65%, but profit up marginally
Higher costs, weak US$ offset better refining margin; no divestment gain
By NISHA RAMCHANDANI
DESPITE revenue surging almost 65 per cent to $3.25 billion for the second quarter, Singapore Petroleum Company (SPC) recorded a marginal 0.6 per cent year-on-year rise in net profit to $180.26 million for the three months ended 30 June.
Earnings per share rose to 34.96 cents for the quarter from 34.79 cents for the year-ago comparative period.
For the first six months of this year, net profit fell to $278.75 million from $291.34 million in 1H07 while revenue grew 52.8 per cent from $3.9 billion to $5.96 billion.
An interim one-tier (tax exempt) dividend of 20 cents per share will be paid out on Aug 26.
In Q2, SPC completed its scheduled maintenance programme of the Catalytic Reformer (CRU) and the Hydrocracker 2 (HCU2) upgrading units which led to total crude and feedstock throughput being reduced by 9 per cent to 263,000 barrels per day. However, sales volume increased to 19.3 million barrels from 18.3 million in the corresponding quarter for 2007.
For the quarter, the group achieved an average refining margin of US$13 per barrel, compared with US$9 per barrel for 2Q07. This was offset by lower refinery product throughput, higher processing costs, higher hedging costs and the weaker US dollar, said SPC.
Another key factor is that there was no divestment income in Q2 2008, against $14.1 million in Q2 2007.
Downstream activities contributed $3.15 billion in Q2 turnover and a pre-tax profit of $164.2 million, while exploration and production (E&P) contributed $94.3 million in turnover and a pre-tax profit of $61.1 million.
While the group achieved a higher pre-tax profit of $225.3 million in Q2 2008, higher E&P taxes totalling $23 million increased the group's overall income tax expense to $45.1 million, 75.6 per cent higher than in Q2 2007.
For H1 2008, 'demand for refined products remained robust despite the increases in oil prices,' said SPC.
On prospects ahead, demand might be hit by the slowing global economy in the next 12 months and the reduction of government subsidies in several Asian countries, SPC said. 'The new Reliance Jamnagar refinery coming onstream would add to supply and affect refining margins,' it said.
'However sustainable demand from China, India, Russia and the Middle East will lend support to refining margins. We expact margins to remain healthy.'
The company expects to stay profitable for the rest of the year. SPC shares closed trading yesterday at $6.53, down 2 cents.
You can read SPC's news release here.
By NISHA RAMCHANDANI
DESPITE revenue surging almost 65 per cent to $3.25 billion for the second quarter, Singapore Petroleum Company (SPC) recorded a marginal 0.6 per cent year-on-year rise in net profit to $180.26 million for the three months ended 30 June.
Earnings per share rose to 34.96 cents for the quarter from 34.79 cents for the year-ago comparative period.
For the first six months of this year, net profit fell to $278.75 million from $291.34 million in 1H07 while revenue grew 52.8 per cent from $3.9 billion to $5.96 billion.
An interim one-tier (tax exempt) dividend of 20 cents per share will be paid out on Aug 26.
In Q2, SPC completed its scheduled maintenance programme of the Catalytic Reformer (CRU) and the Hydrocracker 2 (HCU2) upgrading units which led to total crude and feedstock throughput being reduced by 9 per cent to 263,000 barrels per day. However, sales volume increased to 19.3 million barrels from 18.3 million in the corresponding quarter for 2007.
For the quarter, the group achieved an average refining margin of US$13 per barrel, compared with US$9 per barrel for 2Q07. This was offset by lower refinery product throughput, higher processing costs, higher hedging costs and the weaker US dollar, said SPC.
Another key factor is that there was no divestment income in Q2 2008, against $14.1 million in Q2 2007.
Downstream activities contributed $3.15 billion in Q2 turnover and a pre-tax profit of $164.2 million, while exploration and production (E&P) contributed $94.3 million in turnover and a pre-tax profit of $61.1 million.
While the group achieved a higher pre-tax profit of $225.3 million in Q2 2008, higher E&P taxes totalling $23 million increased the group's overall income tax expense to $45.1 million, 75.6 per cent higher than in Q2 2007.
For H1 2008, 'demand for refined products remained robust despite the increases in oil prices,' said SPC.
On prospects ahead, demand might be hit by the slowing global economy in the next 12 months and the reduction of government subsidies in several Asian countries, SPC said. 'The new Reliance Jamnagar refinery coming onstream would add to supply and affect refining margins,' it said.
'However sustainable demand from China, India, Russia and the Middle East will lend support to refining margins. We expact margins to remain healthy.'
The company expects to stay profitable for the rest of the year. SPC shares closed trading yesterday at $6.53, down 2 cents.
You can read SPC's news release here.
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