Yahoo Finance 
Stocks In Focus SG (Ezra, SPH REIT, ST Engrg) – 10/01/14
Ezra’s 1Q14 Profits Edged Down 6.1%
For the quarter ended 30 November 2013, Ezra Holdings saw a 21.9 percent increase in revenue to US$339.8 million from US$278.7 million in 1Q13, driven by higher contributions from its subsea services and marine services divisions.
Other operating income declined 84.1 percent to US$1 million from US$6.3 million, mainly due to the absence of one-off asset disposal gains recognised in the corresponding quarter in 2012 as well as foreign exchange losses incurred.
Non-controlling interests expanded more than a fold to US$2.4 million, dragging earnings for the quarter down to US$6.3 million, a decrease 6.1 percent compared to 1Q13.
Significance: With its order book remaining strong at above US$2 billion and utilisation of offshore support services division at 90 percent, Ezra Holdings is positive about the long term prospects of the oil and gas industry which will further benefit its subsea, marine and offshore support services divisions.
SPH REIT’s First Distribution Of 1.86 Cents Per Unit Beats Forecast by 2.2%
Despite recording a marginally lower-than-expected gross revenue of $70.4 million, for the quarter ended 30 November 2013, SPH Real Estate Investment Trust (SPH REIT) raked in net property income of $51.4 million, exceeding the forecast of $50.5 million by 1.8 percent.
The lower-than-forecast gross revenue of $70.4 million was mainly attributed to lower gross rental income from Paragon, while gross rental income was relatively flat for Clementi Mall. Property operating expenses were 3.9 percent below forecast at $19 million, due to lower utilities, property taxes, marketing and other expenses partially offset by higher maintenance costs.
Consequently, income available for distribution to unitholders was 1.9 percent above forecast at $46.5 million, translating into a 1.86 cents distribution per unit for the quarter.
Significance: SPH REIT has put in place a well-staggered debt profile with a weighted average term to maturity of 4.8 years. In absence of refinancing requirements till 2016 and a healthy gearing level of 26.7 percent, combined with an average cost of debt of 2.3 percent as at 30 November 2013, SPH REIT is well-positioned for the eventual increase in interest rates which can adversely impact the REITs sector as a whole.
ST Engrg’s Aerospace Arm Seals New Contracts Worth $780m
Singapore Technologies Engineering’s aerospace arm, Singapore Technologies Aerospace (ST Aerospace), has secured new orders worth $780 million in 4Q13. These contracts span the aerospace sector’s broad range of capabilities, from airframe, component and engine maintenance, to cabin reconfiguration and engine wash.
Out of these contracts, notably, the contract secured for five 757-200SF converted freighters which is the first of such order to be made since the debut of the 757-200SF freighter conversion programme in June 2013.
In 4Q13, ST Aerospace re-delivered a total of 198 airframe maintenance and modification works. A total of 10,985 components, 67 landing gears and 60 engines were processed, while 2,484 engine washes were conducted for both commercial and military customers.
Significance: Other initiatives implemented in 4Q13 include the setting up of an aircraft leasing business to focus on mid to end-of-life aircraft for leasing, conversion and part out as well as the establishment of Hondo Aerospace at the South Texas Regional Airport in Hondo, Texas to venture into green harvesting of aircraft parts, components and engines.
More From Shares Investment:
