Kencana Agri’s 1Q2012 Net Profit Drops 54 Per cent
Kencana Agri Limited Friday announced a net profit of US$2.2 million (about S$2.8 million) for the first quarter ending 31 March 2012 (1Q2012), down 54 per cent from US$4.6 million in 1Q2011.
The group attributed the lower net profit to a drop in crude palm oil (CPO) and crude palm kernel oil prices, as well as the weakening Indonesian rupiah.
Revenue soared 62 per cent from US$48.0 million in 1Q2011 to US$77.7 million for
1Q2012. Kencana said this increase was mainly due to higher sales volume of CPO.
For the outlook, it said that the current global economic uncertainty, particularly over the European debt crisis, is likely to continue affecting demand and prices of oil seed products and CPO. The recent political changes in certain European countries may also add to the uncertainty, it added.
Henry Maknawi, Chairman and CEO of Kencana, said: “The group will have more mature trees coming into production which, barring any unforeseen circumstances, will result in higher FFB (Fresh Fruit Bunches) and CPO production. The balance sheet and results of the group are expected to (remain) healthy. The group will continue to monitor its production costs and overall expenses.”
Kencana Agri Limited closed Friday at S$0.360.
Kian Ann’s 9MFY2012 Net Profit Up 16.2 Per cent
Mainboard-listed Kian Ann Engineering Limited, one of the world’s largest independent distributors of heavy machinery parts, Friday announced that net profit attributable to owners of the parent grew by 16.2 per cent year-on-year to S$14.4 million for the nine months ending 31 March 2012 (9MFY2012).
For 3QFY2012, the group reported sales of goods of S$42.5 million, representing a 5.1-per cent increase from the previous corresponding period.
Gross profit margin decreased from 28.6 per cent in 3QFY2011 to 27.6 per cent in 3QFY2012. Kian Ann attributed the decline to stronger market competition that affected the sales of some of its parts.
In December last year, the group commenced expansion of its warehouse space located in Changi South, Singapore. When completed, the total warehouse space would be increased by about 46 per cent to more than 24,200 square metres. The additional warehouse space is expected to increase the group’s competitive advantage in its distribution capacity over the longer term and allow it to widen the range of parts that it carries. This in turn will contribute to customers’ inventory management processes.
Kian Ann said the slow economic growth in China, uncertainties in the US and Japanese economies, as well as the continued European sovereign debt crisis may pose challenges to its business operations.
However, it added that it would remain vigilant in its operational and financial management. The group will also continue its efforts to broaden its range of goods and expand its presence in new and emerging markets.
Kian Ann Engineering Limited closed Friday at S$0.220.
Golden Agri-Resources Posts 1Q2012 Net Profit of US$162 million
Golden Agri-Resources Ltd (GAR) Friday announced a net profit of US$162 million (about S$202.5 million) for the first quarter ending 31 Mar 2012 (1Q2012), down 30 per cent from US$231 million in 1Q2011.
It attributed the lower 1Q2012 net profit to lower crude palm oil FOB prices, as well as higher fertiliser application and labour cost.
However, GAR has been able to sustain its year-on-year production growth, supported by larger areas of mature plantations.
As at end-March this year, GAR’s total planted area was 455,800 hectares, remaining the largest in Indonesia. The age profile of GAR’s plantations is favourable, comprising 28 per cent of immature and young plantations, and 47 per cent in their prime age. With a low average tree age of 13 years, the company is also well-positioned to sustain its long-term growth in production.
GAR said fundamentals of the palm oil industry are expected to remain sound, due to stable demand growth for vegetable oils for edible and alternative uses, as well as the limited growth of global supply.
It has a budgeted capital expenditure of US$500 million for the year, for investments in upstream projects involving the expansion of plantation area and milling capacity, as well as investments in downstream projects to boost refining capacity and supporting facilities.
In addition, the new export tax scheme initiated by the Indonesian government has encouraged downstream players to expand their refining capabilities to benefit from the lower export tax for refined palm oil products. GAR said it will maintain the balance between upstream and downstream capacity to ensure optimal benefit from operating an integrated value chain.
Franky Widjaja, Chairman and Chief Executive Officer of GAR, said: “We have started the year 2012 with good momentum and we are confident that the palm oil industry continues to enjoy excellent prospects. We will continually implement best-in-class sustainable plantation management practices, and also be nimble and equip ourselves to seize new opportunities that may arise. This, together with our solid financial position, will enable us to expand our business through organic growth and strategic acquisitions.”
Golden Agri-Resources Ltd closed Friday at S$0.695.
Amtek Engineering’s 3QFY2012 Profit after Tax Down 22 Per cent
Amtek Engineering Ltd Friday reported a 1-per cent increase in revenue to US$165.5 million (about S$206.9 million) for the third quarter ending 31 March 2012 (3QFY2012).
Profit after tax for 3QFY2012 was US$8.2 million, down 22 per cent year-on-year.
Amtek attributed the drop to higher tooling sales that were strategically sold at cost and resulted in higher cost of goods sold; lower other income from gains on disposal of plant and equipment; and higher general and administrative expenses due to higher wage and utility costs.
The board has declared an interim dividend of S$0.023 per ordinary share.
Amtek said that despite ongoing economic uncertainties in Europe, the general business outlook for the group is improving. Management has also retained its level of investment in the business infrastructure to support a progressively improving business environment.
The group added that barring unforeseen circumstances, it will remain profitable in the current financial year.
Amtek Engineering Ltd closed Friday at S$0.640.
CNA’s 1QFY2012 Revenue Grows 6.9 Per cent to S$21.3 million
Master systems integrator, CNA Group Ltd, Friday announced a 6.9-per cent increase in revenue to S$21.3 million for the three months ending 31 March 2012 (1QFY2012), compared with a year ago.
For 1QFY2012, the revenue contributions from its operations in Singapore, China and Vietnam increased by 9 per cent in aggregate.
Gross profit rose from S$3.6 million in 1QFY2011 to S$4.0 million in 1QFY12.
Profit from operations in 1QFY2012 was approximately S$0.1 million, compared with S$0.4 million in 1QFY2011. CNA attributed the lower profit from operations to a foreign exchange loss of S$0.1 million incurred during the period. Other operating expenses arising from its Thai subsidiary and higher marketing expenses in keeping with the expansion of regional activities also contributed to the decrease.
As at 31 March 2012, the group’s orderbook stood at S$54.3 million and has since secured another S$12.9 million worth of contracts, bringing the total orderbook to S$67.2 million to date.
Overall, the group said it remains cautiously optimistic on its business outlook, but believes that its information communication technology and Mechanical, Electrical and Plumbing businesses will continue to grow steadily under its Water, Energy and Environment (WE2) strategic directions.
CNA’s CEO and president, Michael Ong, said: “We have been actively exploring many new potential markets such as Thailand and we are starting to see our efforts bearing fruit, with the winning of the Nanotek International’s factory construction and construction management project. I believe with the ample opportunities available there, Thailand could be our next growth driver in the region.”
Jaya’s 3QFY2012 Revenue Up, but Net Profit Down
Jaya Holdings Limited reported consolidated revenue of US$16.2 million (about S$20.3 million) for the third financial quarter ending 31 March 2012 (3QFY2012), up 17 per cent from the previous corresponding quarter.
The increased revenue was mainly contributed by the offshore shipping division. The shipbuilding division recorded no revenue for the quarter under review and the previous corresponding quarter.
Jaya’s net profit for the quarter under review amounted to US$3.8 million, down 89 per cent from US$34.3 million a year ago.
The group noted that the offshore supply vessel market continued to improve gradually during the period under review, notwithstanding the fact that the market remained oversupplied, which kept charter rates stagnant.
However, as a result of exceptionally high tender activity in the first quarter of 2012 in Malaysia, Indonesia, Australia and Vietnam, there seems to be increasing optimism in the market, reinforced by increasing demand from East and West Africa for mid- and large-sized vessels from Asia, it said.
In its offshore services business, the group is focusing on entering new markets, increasing utilisation and improving charter rates. Charter utilisation is expected to continue improving significantly over the next reporting period.
Meanwhile, the group is re-evaluating its new-building programme and has plans to reconfigure some of the assets in the existing build programme to enhance the marketability and value of these assets. The group will continue to selectively sell vessels with the objective of improving the fleet mix.
Jaya recently won term charter contracts worth US$108.4 million for five of its Anchor Handling Tug and Supply Vessels and two of its ROV Support Vessels.
It was also recently awarded membership by the International Marine Contractors Association.
Jaya Holdings Limited closed Friday at S$0.550.
Etika’s Profit after Tax Falls 81.3 Per cent in 2QFY2012
Etika International Holdings Limited, one of the world’s largest manufacturers and distributors of sweetened condensed milk and a leading regional food and beverage group, Friday announced an 11.6-per cent year-on-year increase in revenue to RM246.8 million (about S$100.5 million) for the second quarter ending 31 March 2012 (2QFY2012).
Profit after tax for 2QFY2012 was at RM4.9 million, down 81.3 per cent from RM26.5 million a year ago.
Etika attributed the decrease to the one-off negative goodwill of RM14.5 million arising from the acquisition of PT Sentrafood Indonusa and PT Sentraboga Intiselera recorded in 2QFY2011, increased operating costs and higher finance costs during 2QFY2012.
Excluding the negative goodwill, profit after tax would have dropped by 58.8 per cent year-on-year in the period under review.
The board has declared a tax exempt (1-tier) interim dividend of S$0.005 per share for the year ending FY2012.
Etika’s group chief executive officer, Dato’ Kamal Tan, said: “Notwithstanding major economic concerns and a challenging commodity market environment, we are confident that our strong brand equity and increased market presence will enable Etika to continue its momentum to the next level. With acquisitions now largely in place, we look forward to new product launches and are optimistic that as we grow our geographical footprint and increase our production volume, we will be able to achieve greater economies of scale.”
Etika International Holdings Limited closed Friday at S$0.230.