Tiger Airways FY12 Report Plunges Into Red Ink
Tiger Airways announced its FY12 earnings report card on Friday evening after trading hours. The budget airline reported a net loss of $104.3 million on the back of marginally lower revenue of $618.2 million. Tiger remarked that the steep losses incurred for the year was due primarily to the under utilisation of its aircraft fleet as well as substantially higher fuel prices. On the under utilisation of aircraft, Chin Yau Seng, chief executive officer had this to say: “Clearly, the Tiger Airways Australia suspension by the Civil Aviation Authority of Australia from 2 July to 11 August 2011 contributed significantly to the poor financial results.” To add further, Chin mentioned that Tiger has taken steps to alleviate its current predicament and is making good progress in nursing the group back into financial health. Following rapid capacity expansion in FY12, Tiger said that it intends to moderate its seat capacity growth in FY13 to allow passenger demand to catch up. During FY12, Tiger Singapore had grown its capacity by 47 percent but only saw passenger numbers increase by only 39 percent.
Significance: Despite the harrowing experience Tiger has gone through during FY12, it seems primed to tap into growth opportunities in the Philippines, Indonesia with its joint ventures and further penetration of the Australian market.
Midas Secures Rmb62.2 Million Worth Of Metro Contracts
Midas Holdings said that its aluminium alloy division has been award two metro contracts worth a combined Rmb62.2 million from customers in China. CSR Zhuzhou Electronic Locomotive awarded the first contract. The Rmb33.7 million contract entails the supply of aluminium alloy extrusion profiles and certain fabricated parts for 22 train sets or 132 train cars for the Ningbo Metro Line 1 project. The second contract was awarded by Midas’s 32.5 percent owned joint venture, Nanjing SR Puzhen Rail Transport. Midas is contracted to supply aluminium allow extrusion profiles for 21 train sets, or 126 train cars for the Nanjing Metro Line 10 project for about Rmb28.5 million. Patrick Chew, chief executive officer of Midas said that the latest contract wins has reaffirmed the company’s capabilities and customers’ confidence in its products.
Significance: The first contract, in particular, marks Midas’s first foray into another PRC city which does not have an existing metro system. The initial contract could bring opportunities for Midas to showcase its strengths as it considers the city’s plan for six other metro lines as growth opportunities.
Sound Global Wins Bid For Wastewater Plant In PRC
Sound Global has won a bid to build, operate and transfer phase two of a wastewater plant in Chang’an District, Xi’an City, Shaanxi Province of China. Phase two is an expansion project of an existing wastewater plant in the city and will be invested and built by the firm with the view of increasing its treatment capacity by 50,000 cubic metres per day to double its treatment capacity to 100,000 cubic metres upon completion. Sound Global anticipates that the total investment for this phase will be approximately Rmb58.6 million. The firm opines that the project will play a significant role in improving the development quality and living environment of Xi’an City. Wen Yibo, Chairman of Sound Global said that with the completion of phase two, the plant will be able to fully meet the wastewater treatment needs of the urban area in Chang’an and promote the improvement of the environmental quality of the Wei River.
Significance: Sound Global has had relative success in completing award-winning projects, backed by its extensive R&D and technical expertise. The newest contract win reaffirms this notion and will provide impetus for its future earnings beyond FY12.