Keppel Kazakhstan Tie-Up Bags US$242m Jack-Up Rig Contract
In another media release by Keppel Corporation, Keppel Kazakhstan LLP and its consortium partner, Ersai Caspian Contractor LLC, have announced bagging a US$242 million jack-up rig contract from Teniz Burgylau LLP, a unit of KazMunayGas, Kazakhstan’s state-owned oil and gas company. The deal was for a KFELS B Class jack-up rig, slated for delivery in 1Q15, which will be deployed in the Caspian Sea upon completion. Keppel Kazakhstan and Ersai Caspian Contractor will split the work equally on the rig. According to the Oil and Gas Journal in 2010, Kazakhstan’s proven oil reserves are estimated at 30 billion barrels and its natural gas reserves at 85 trillion cubic feet. While Kazakhstan aims to steadily increase its oil and gas production to become one of the world’s top oil and gas producers and exporters, Keppel Offshore & Marine’s 50-percent owned yard in Kazakhstan, which has been in operation since 2003, will be able to support their needs as the nation unlocks its potential.
Significance: Keppel Offshore & Marine currently has 34 KFELS B Class rigs in operation and another 19 on order, which is testimony to its established track record as the leading offshore rig designer and builder.
Neo Group Lists On SGX Catalist
Home-grown food caterer, Neo Group’s initial public offering (IPO) at $0.30 per share closed yesterday and received a healthy response, being 15 times oversubscribed. Chairman and chief executive officer Neo Kah Kiat was pleased with the response, especially given the current economic climate. He noted that it shows the confidence that its new shareholders have in the company due to its sound business fundamentals and dynamic growth plans. The company reported revenues of $38.4 million and profits of $5.4 million for FY12 and plans to distribute dividends of at least 60 percent of its net profit attributable to shareholders for the next three years. Shares of Neo Group have begun trading on the SGX Catalist today, opening 55 percent higher than its IPO price at $0.465.
Significance: The company will receive a net proceed of approximately $5 million from the IPO, which it intends to use to expand and develop its food catering business and food retail business as well as potential acquisitions, joint ventures and strategic alliances.
Midas Poised For Recovery; Rides Demand In China Rail Sector
Midas Holdings is poised for a strong business recovery, now that Beijing has ended the investigation of the July 2011 catastrophic high-speed train crash, which halted the developments in the rail sector, according to its chief executive officer Patrick Chew Hwa Kwang. Besides the Chinese capital approving spending that has been put on hold on its national high-speed rail grid, Chinese cities have embarked on aggressive projects to build metro systems. Chew noted that the Chinese Ministry of Railway and state-owned rail enterprises for China Southern Rail and China Northern Rail have started pushing ahead with the Rmb2.5 trillion ($498 billion) railway construction and upgrading programme under China’s 2010-2015 Five Year Plan. So far this year, Midas has won a number of metro contracts but Chew expects more of the larger contracts to come as the government has targeted 120,000 km of intercity rail track construction under its plan.
Significance: Midas control 66 per cent of the Chinese market for the supply components which make up the shell of aluminium coaches. With an impending explosion of the pent-up demand, Midas will likely see its top and bottom lines jumping substantially in time.