Keppel FELS Secures US$950m Worth Of Petrobras Contracts
Keppel Corporation’s Keppel FELS Brasil has clinched about US$950 million worth of contracts from Petrobras-led consortiums. Guara BV and Tupi BV have contracted Keppel to fabricate and integrate topside modules on the Floating Production Storage and Offloading vessels (FPO) P-66 and P-69. The FPSOs will have identical work scopes which include the fabrication and integration of seven topside modules. When completed, the P-66 will be deployed to the Guara field while the P-69 will work in the Tupi field in offshore Brazil. Chow Yew Yuen, chief operating officer of Keppel Offshore & Marine said that the company is pleased to be able to support Petrobras in growing its fleet of FPSOs. Chow also commented that the two similar projects will enable the company to maximise its efficiencies and thus add value for its clients. The two contracts are not expected to contribute materially to Keppel’s performance for the current financial year.
Significance: BrasFELS, Keppel’s Brazilian shipyard has delivered several projects and has established a track record of quality deliveries. Prior to this contract win, the shipyard is already undertaking the fabrication and integration of two FPSOs and have recently sealed another contract with MTOPS for a third FPSO.
Parkson Retail Asia Records 29.9% FY12 Earnings Growth
Parkson Retail Asia has posted in growth of 20.4 percent and 29.9 percent in its top line and bottom line performance for FY12. Revenue grew from $367.3 million to $442.3 million as strong total gross sale proceeds helped to push top line performance northwards. A component of that, the same store sales helped to increase gross sale proceeds across all of Parkson’s geographical regions. Parkson said in its press release that the continued same store sales in Malaysia and Vietnam as well as the inclusion of sales performance at new stores and business operations in Indonesia were key contributing factors to the overall growth experienced in FY12. Datuk Alfred Cheng, managing director of Parkson said that the group is particularly pleased to be able to ride on the growth of its operating markets in particular in Malaysia and Indonesia. Cheng opined that Parkson’s positioning had enabled it to shake off the effects of weaker macro-economic conditions in these markets. Parkson targets the middle to high income consumers.
Significance: Parkson’s strategy of expanding its store network as well as continually enhancing the retail experience at its stores will enable it to harness the retail market growth of the emerging markets it is operating in.
Hersing To Be Taken Private With $0.23/Share Bid
United Overseas Bank have announced that its client, AHC intends to make a voluntary conditional cash offer for Hersing Corporation with a $0.23/share bid. The offer represents a 21.1 percent premium over the last traded price on 7 August 2012 and 30.7 percent premium over the 30 June 2012 net asset value of the company. The offer is conditional to a minimum 90 percent acceptance from Hersing’s shareholders. Harry Chua, chairman of Hersing and sole shareholder of AHC intends to take Hersing private. In its offer document, AHC mentioned the low trading volume as well as costs incurred to maintain the Hersing’s listed status as key rationale for the offer. After taking the company private, AHC intends to make no major changes to Hersing’s business.
Significance: The offer “represents a unique cash exit opportunity for shareholders to realise their entire investment, an option which may not otherwise be readily available due to the low trading liquidity of the shares, without incurring brokerage and other trading costs”.