oil and gas (O&G)

Will potential white knight investor rescue Ezion from the red?

SINGAPORE (Mar 11): DBS Vickers Securities is reiterating its “hold” call on Ezion Holdings with a target price of 5 cents, which is based on 10 times FY20 fully-diluted earnings after lowering FY20 earnings forecasts by 45%.

The lower estimates come on the back of slower-than-expected ramp-up in utilisation and revenue, as Ezion remained in the red over 4Q18 with core losses of about US$28 million. Its revenue for the quarter was mainly affected by a delay in redeployment due to working capital constraints and higher maintenance costs incurred.

CSE Global swings back into the black with 4Q earnings of $4.9 mil; proposes 1.5-cent final dividend

SINGAPORE (Feb 20): Technologies company CSE Global declared earnings of $4.9 million for the 4Q ended December, reversing back into profitability from its restated loss of $39.1 million due to improved margins.

This comes despite a 14.2% y-o-y decline in quarterly revenue to $100.1 million from revenue of $116.7 million a year ago, as gross margin improved to 30.2% in 4Q18 from 24.8% the previous year.

CSE kept at 'buy' by UOB, RHB on stronger outlook with 4Q contract wins

SINGAPORE (Jan 16): UOB Kay Hian and RHB Research are reiterating their “buy” calls on CSE Global after the group announced it secured $84.8 million worth of infrastructure projects in 4Q18.

Both research houses have a 59-cent target price on the stock.

Keppel O&M subsidiary wins $30 mil contract from KrisEnergy

SINGAPORE (Nov 9): Keppel Shipyard, the wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has won a production barge upgrade contract worth about $30 million for the modification and upgrading of a production barge for KrisEnergy’s wholly-owned subsidiary, SJ Production Barge.

Under the terms of the contract, Keppel Shipyard’s scope of work will include installing a power generation module, Electrical House, new accommodation units, and other refurbishment works for the production barge.

Federal International (2000) secures $80 mil in new orders

SINGAPORE (Oct 1): Federal International (2000) says it secured five contracts amounting to a total of US$58.4 million ($80 million), the largest being a US$51.3 million five-year charter hire contract for Federal II, a floating, storage and offloading (FSO) vessel owned by the group’s subsidiary, Eastern Jason Fabrication Services (EJFS).

This comes after the group’s previous charter agreement between China National Offshore Oil Corporation (CNOOC) and PT Eastern Jason PTEJ – which secured the five-year charter hire contract and is 30%-owned by EJFS – expired on Sept 5.

Singapore remains oil-fuelled economy despite renewables push

SINGAPORE (Aug 20): The Muffinry in Telok Ayer, a café run by local F&B business Bakery & Bar, has a little framed certificate on a shelf facing the cash register. It points out that the café is a customer of Sun Electric, a local solar energy retailer. The move to use solar power, since the liberalisation of the electricity market earlier this year, has been smooth and also helped the café save on its electricity bill, staff say.

Accumulate on GSS Energy's current price weakness: RHB

SINGAPORE (May 18): GSS Energy reported a 36.1% fall in 1Q18 earnings to $0.67 million from $1.05 million in 1Q17, on the back of higher expenses.

Revenue was 12.4% higher at $24.4 million from $21.7 million a year ago, entirely contributed by the group’s precision engineering (PE) business.

This brought 1Q18 gross profit to $5.69 million, 11.9% higher than $5.09 million last year.

Distribution and selling expenses were 33.2% higher y-o-y at $2.42 million, while administration expenses increased by 24.0% y-o-y to $1.64 million.

Outlook remains promising for Megachem even as margins face risks: NRA

SINGAPORE (Apr 30): NRA Capital likes Megachem as a proxy to broad economic growth, and values the counter at $67.9 million or at about 14.7 times FY18F PATMI.

This comes after the specialty chemical solutions provider reported a strong set of results for 2H17, resulting in 88.1% higher FY17 earnings of $4.2 million.

See: Megachem reports 88% rise in FY17 earnings to $4.2 mil on higher sales

4 ways the O&G sector continues to face protracted soft conditions: Phillip

SINGAPORE (Apr 16): Phillip Capital is of the view that Singapore’s oil and gas (O&G) sector is facing an extended period of soft conditions.

To begin with, banks have now become the de facto owners of vessels, rigs and other facilities taken over from loan defaulters, and are now facing difficulty in disposing of such assets, in the research house’s view.  

Shareholders in Brazil demand Petrobras match US$3 bil US settlement

RIO DE JANEIRO (Jan 5): Brazilian shareholders of state-controlled Petroleo Brasileiro SA are petitioning a Brazilian court to be paid on similar terms as those given to US shareholders in a US$2.95 billion ($3.9 billion) settlement, a lawyer told Reuters on Thursday.

Petrobras on Wednesday agreed to settle a class action lawsuit in the United States that claimed damages for the oil company's role in a bribery scheme involving company executives and government officials. Petrobras said the settlement was not an admission of guilt and denied any wrongdoing.

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