Company Updates

Six JES shipbuilding orders worth US$160m cancelled

JES International Holdings said that two customers have negotiated for revisions to their shipbuilding contracts for bulk carriers. Under the revisions, four units from one customer and two units from the other customer will be cancelled while the delivery dates for the other remaining six units with these two customers will be delayed for a period of two to four months. The total value of the six cancelled orders approximates US$160 million. As at Sept 30, 2008, JES's order book stood at about US$1.43 billion.

UIC appoints ING Bank as independent adviser on UOL offer

UNITED Industrial Corporation (UIC) has appointed ING Bank as the independent financial adviser on the offer by UOL Group. UOL is making a $1.15 billion offer for all shares it does not own in UIC.

Tat Hong warns of lower Q3 2008 profit

CRANE operator Tat Hong Holdings said yesterday that profits for the third quarter ended Dec 31, 2008, will be lower compared with the same corresponding quarter in 2007. This is due to forex losses as a result of the weakening Singapore dollar and Australian dollar against the strengthening Japanese yen, and lower equipment sales and order book recorded in the third quarter as customers turn more cautions amid credit tightening by banks.

Adventus expects larger than projected losses for FY2008

ADVENTUS Holdings said yesterday that it will report larger than expected net losses for the full year ended Dec 31, 2008. The results for the second half of FY2008 have been affected by write-offs and provisions for impairment losses on the group's investments brought about by the current difficult market conditions.

Yongnam wins $185.5m Marina Coastal Expressway contract

YONGNAM Holdings has been awarded its single largest contract to date, valued at $185.5 million, for the 5km Marina Coastal Expressway. Yongnam will provide temporary steel pipe pile cofferdam, steel waling and strutting works, construction decking and other associated works, to be constructed in two stages. The contract is targeted for completion by June 2013 and is expected to have a material impact on the group's financial performance for the financial year ending Dec 31, 2009.

Guocoland enters JV to develop Vietnam retail mall

GUOCOLAND has entered into an agreement with ECC VNPI through its wholly owned subsidiary, GuocoLand Vietnam (GLV), to establish a joint venture company that will develop a retail mall in the Binh Duong province. ECC VNPI is a wholly owned subsidiary of European Construction Consortium, a Netherlands-based real estate development and investment group. ECC VNPI will subscribe for an 80 per cent stake in the JV company while GLV will subscribe for the remaining 20 per cent. The total registered capital of the JV company will be US$33 million.

Jiutian Chemical says loss likely for Q4 2008

JIUTIAN Chemical Group said yesterday that it is likely to report a loss for the fourth quarter ended Dec 31, 2008. It said that it has to provide for a 15.3 million yuan (S$3.35 million) impairment on the value of its chemical stocks. As a result, the group also expects to register a loss for the full year. It added that plans for Yongmei Group to inject 200 million yuan into Jiutian's new methanol plant have been held up pending government approvals, and this is likely to delay the completion of the plant by up to six months to September.

WBL, GIC unit end proposed Shenyang property project

WBL Corp said that a proposed property project in China's Shenyang province with an affiliate of GIC Real Estate has been terminated due to non-fulfilment of certain conditions. The GIC Real Estate unit, Reco Shenyang, said that the allotment and issue of shares of the joint venture vehicle had not been completed on time. WBL blamed it on a delay in the land auction process by the local land bureau. WBL said that the termination has no impact on its results for the year to Sept 30, 2009.