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Listco News: Mainboard

Otto Marine’s FY2010 Bottom Line Down 22.3 Per cent Due to One-off Adjustments

Otto Marine Limited, an offshore marine company specialising in building complex offshore support vessels, ship chartering and specialised offshore services, reported a 22.3 decline in net profit to S$40.6 million for the twelve months ending 31 December 2010 (FY2010).

Net income in FY2009 was S$52.3 million.

Otto Marine attributed the lower bottom line to one-off items that it booked for FY2010. First, the company recorded a net foreign exchange loss of S$22.4 million, the majority of which was attributable to unrealised mark to market losses due to the weakening of the euro against the US dollar and the US dollar against the Singapore dollar. Finally, it also reversed a total of S$23.6 million recognised profits for the terminated sale contracts for vessels sold to a customer and an associate.

Without these one-off items, net profit would have been S$86.6 million.

For FY2010, Otto Marine earned total revenue of S$579.9 million, 36 higher year-on-year.

“In 2010, we were impacted by one-off events. Notwithstanding this, the company maintains its strategy of building sophisticated offshore vessels while at the same time increasing contributions from chartering and specialised offshore services,” said Mr Lee Kok Wah, President and Group Chief Executive Officer.

“We made further progress in developing our overseas network to strengthen our chartering business in key markets. Starting this month, February 2011, we partnered Australia-based Go Marine to target the robust Australian oil and gas market,” he added.

Otto Marine Limited closed on Friday at S$0.300

Asia Enterprises’ Net Profit Jumps 19 Per cent in FY2010

Asia Enterprises Holding Limited, a regional distributor of steel products to industrial end-users, recorded a 19 per cent increase in net profit to S$9.7 million for the twelve months ending 31 December 2010 (FY2010).

The group achieved the stronger bottom line in spite of a 13 per cent decline in revenue to S$127.2 million, thanks to an improvement in its gross profit coupled with a reduction in its operating expenses.

To reward shareholders, the group has proposed a final dividend of S$0.014 per share for FY2010. This represents approximately 40 per cent of its earnings per share of S$0.035, which is consistent with its payout ratio for each of the past five financial years.

Said Ms Yvonne Lee, Managing Director of Asia Enterprises, “The group closed the year on a positive note with stronger sales performance in 4Q2010 which is traditionally a slow period. In particular, we witnessed higher orders from customers in the marine and offshore sector in tandem with their project requirements. Going forward, Asia Enterprises remains in pole position to benefit from further increases in marine and offshore activities in Singapore and the region through our wide base of customers in this sector.”

Asia Enterprises Holding Limited closed on Friday at S$0.350.

Technics Oil & Gas Limited Sets TDR Issue Price at NT$11.70

Technics Oil & Gas Limited on Friday announced that it has signed an underwriting agreement with Polaris Securities Co Ltd in connection with its issuance of its Taiwanese Depository Reserves (TDRs).

In line with its bookbuilding process for the proposed TDR issuance, the company has also set its TDR issue price at NT$11.70 (S$0.51) for each TDR. This represents approximately a 0.99 per cent premium over S$1.01, being the weighted average price for trades done on the SGX for the full market day on which the underwriting agreement was signed.

The company expects to raise proceeds of approximately NT$304.20 million from the proposed TDR issue, which will be used to repay part of its bank borrowings.

Technics Oil & Gas Limited closed on Friday at S$1.000.

Bright World More Than Doubles Net Profit in FY2010

Mainboard-listed Bright World Precision Machinery Limited, a manufacturer of precision stamping equipment in China, announced that it has more-than-doubled its net profit year-on-year to RMB125.2 million (S$24.3 million) for the full year ending 31 December 2010 (FY2010).

The company said its performance was driven by strong demand for stamping machines in China, particularly from the automotive and home appliance sectors.

Turnover rose 85.2 per cent to RMB1.04 billion, backed by a shift in product mix towards high-performance and high-tonnage stamping machines, where the sales jumped 107.0 per cent last year, compared to 65.7 per cent increase for conventional stamping machines.

“Our partnership with Aida of Japan, a global leader for stamping machines, has enabled us to develop and introduce more sophisticated stamping machines to serve the increasing needs of our customers, and to target new customers with higher technical specifications. It has helped us expand our presence to customers in the automotive sector, especially for Japanese and other foreign car brands,” said Mr Shao Jian Jin, CEO of Bright World.

Bright World Precision Machinery Limited closed on Friday at S$0.590

Delong Holdings’ Bottom Line Falls 54.4 Per cent in FY2010

Mainboard-listed Delong Holdings Limited, a manufacturer of hot-rolled steel coils (HRC) in China, reported that its bottom line for the twelve months ending 31 December 2010 (FY2010) slid 54.4 per cent to RMB305.2 million (S$59.1 million) from RMB668.8 million in FY2009.

The group said the decline reflected lower profit margins and the absence of one-time RMB272.3 million gain on restructuring of old convertible bonds and a RMB41.1 million gain in currency translation booked in 2009.

The latest net profit also included a one-off impairment charge of RMB41.0 million. This one-time non-cash charge was the result of an impairment review that the group undertook for the mill roll production facilities in 3Q2010. Excluding this impairment charge, FY2010 net profit would have been RMB346.2 million.

Going forward, Delong plans to explore growth opportunities through strategic M&A activities to boost production capacity, as well as to improve its portfolio to include higher value-added products.

Delong Holdings Limited closed on Friday at S$0.525.

Courage Marine Earns US$9 million Net Profit in FY2010

Courage Marine Group Limited, a dry-bulk shipping company that transports raw materials for Asia’s growing energy needs, recorded a net profit of US$9 million (S$11.5 million) in the twelve months ending 31 December 2010 (FY2010), from only US$75,000 in the previous year.

The group’s turnover last year increased 67 per cent to US$46.5 million compared with US$27.9 million in FY2009.

“The weak market conditions have led to losses in many dry bulk shipping companies. Fortunately, the group remains profitable, led by the management’s years of experience. We effectively utilise the strategy of using pre-owned vessels and minimal operating costs to achieve over five consecutive years of profitability,” said Mr Hsu Chih Chien, Chairman of Courage Marine.

Courage Marine Group Limited closed on Friday at S$0.190.