Keppel Clinches Third Order From Maersk For US$560m
Keppel Corporation’s subsidiary, Keppel FELS announced on 1 June 2012 that it had secured a contract from Maersk Drilling Holdings worth about US$560 million. The contract, the third such contract to be awarded to Keppel FELS, entails the construction of a Gusto MSC CJ70 ultra harsh environment jackup rig. The contract follows two previous contracts that were awarded in February 2011 and as part of the new contract, Maersk Drilling will have an option to build an additional jackup rig of the same design with Keppel FELS. The CJ70 rigs are designed for operation in the harsh environment of the North Sea, where Maersk intends to deploy them in their new joint project with Statoil. Tong Chong Heong, chief executive officer of Keppel Offshore & Marine said that the repeat order was testimony of Keppel’s ability to deliver high quality rigs on time, safely and within budget. Tong also remarked on the long standing relationship Keppel has built with Maersk Drilling which had enabled Keppel to develop a keen understanding of their client’s requirements, thus enabling Keppel to support Maersk in growing its rig fleet.
Significance: While the contract win will have no material impact in the current financial year, progressive income could be recognised in the years leading towards 1Q15 when the rig will be delivered.
LMA Expands Exclusive Distributorship Of Fuji Products
LMA International reported on 1 June 2012 that it has extended its exclusive distributor agreement with Fuji Systems Corporation to cover all European sales territories with immediate effect. Fuji Systems Corporation manufactures a wide range of silicone medical devices, angiography-related products and para-medical products. The agreement appoints LMA as the exclusive distributor for the Uniblocker, Univent, Silbroncho and Long Wire Reinforced Endotracheal Tube. The One-Lung ventilation product range is targeted at a specialised segment of the anaesthesia market. William Crothers, chief executive officer of LMA said that the extended agreement reflects the trust that customers have in its LMA brand. Crothers also mentioned that Europe is an important and significant market for the company and the agreement will help to reaffirm its position within the market.
Significance: The agreement leverages on LMA’s global sales and marketing organisation and maintains the company’s focus on airway management and anaesthesiology. The extended agreement could thus provide a boost to the company.
Family Behind Tat Hong Acquires Controlling Stake In Intraco
Local crane giant, Tat Hong Holdings’ owners have acquired a 29.9 percent controlling stake in trading house, Intraco for $18.3 million. The purchase works out to $0.62 per share, more than twice Intraco’s last traded price of $0.30 on Monday. Sources at The Business Times said that Tat Hong’s owners had beat out other prominent bidders for the stake, and was willing to pay a share price premium because of the controlling stake. The seller of the stake, Hanwell Holdings, had first bought Intraco in late 2003 for around $18 million in cash. Hanwell mentioned that the rationale for the stake disposal was to enable the company to “realise its investment in Intraco and to unlock the value thereof for its shareholders”. Hanwell intends to use the proceeds to expand its core business and for working capital. Meanwhile, Tat Hong’s chief executive officer, Roland Ng described Intraco as a Singapore institution with a global branding.
Significance: The family behind Tat Hong said that the investment was in line with their belief that Intraco was a good vehicle for growth.