AusGroup says Singapore subsidiary, Cactus Engineering & Trading Pte Ltd has been renamed AusGroup Singapore Pte Ltd.
The change is effective as at 22 November 2010 and is in line with the company’s ongoing integration of operations and associated re-branding.
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Dave Gilbert has been appointed GM wef Sep 10
Work experience: GM, Eastern Australia and South East Asia, AGC Australia Pty Ltd; president director, PT Santan Batu Bara Coal Operations
CIMB cuts AusGroup (5GJ.SG) target price to $0.40 from $0.47, based on 8.5x FY11 P/E, after reducing FY11-12 earnings estimates by 12%-19% to factor in lower gross margin, higher operating expenditure assumptions, according to Dow Jones.
CIMB says margins in fiscal 4Q10 ended June disappointing due to loss of construction contract. Expects order flows to remain weak, improve only from fiscal 2H11.
Research house keeps Underperform call, citing limited catalysts near term. AusGroup provides construction services to companies involved in development of natural resources. Shares off 1.0% at $0.48.
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AusGroup (5GJ.SG) down 1.0% at $0.48, just off 2-month low of $0.475 set in early trade, as June-quarter results disappoint, says Dow Jones.
Provider of construction services to companies involved in natural resources development hit by sharply lower margins due to strong competitive pressure, resulting in fiscal 4Q10 net loss of A$5.3 million ($6.4 million) vs A$6.9 million profit year earlier.
Ausgroup says net profit attributable to equity holders for FY2010 decreased 89.2% to A$2.4 million ($2.9 million).
Revenue decreased to A$366.7 million for FY2010 from A$478.2 million in FY2009 due to lower activity in the first three quarters of FY2010 and client delays on certain projects.
CIMB in an Aug 11 research report says: “Ausgroup announced that 4QFY10 is expected to be a loss due to an impairment charge recorded for its Singapore subsidiary, Cactus. Following this, our FY2010 reported profit is cut to A$8.4 million from A$10.5 million.
CIMB downgrades Ausgroup (5GJ.SG) to Underperform from Neutral, cuts target to $0.47 vs $0.61 on 4Q loss guidance vs profit expected earlier after expected impairment charge for Singapore subsidiary Cactus Engineering, says Dow Jones.
CIMB also cuts FY10 reported profit forecast to A$8.4 million ($10.4 million) vs A$10.5 million, but excluding one-off loss maintains FY10, FY12 EPS estimates at $0.026, $0.067, respectively.
AusGroup says the group is expected to report a loss for the fourth quarter ended 30 June 2010 due to an impairment charge recorded for a subsidiary, Cactus Engineering & Trading.
Since the previous review, AusGroup says Cactus has experienced further declines in revenue and margins and business has remained challenging due to slow demand for the Singapore-based fabrication and machining services from the upstream oil and gas sector. Therefore, the directors are of the view that it is appropriate to make certain impairment adjustment on the goodwill associated with the acquisition of Cactus.
Kelvin Lee Kiam Hwee has been appointed independent director /audit committee member wef May 18
Work experience: Group financial controller, Pan United Corp Ltd; group financial controller, IMC Holdings Ltd
CIMB has cut AusGroup (5GJ.SG) to Neutral from Outperform with target price revised downward to $0.61 vs $0.73 after cutting broker’s EPS estimates by 3-20% for FY10-12, according to Dow Jones.
AusGroup (5GJ.SG) is down 4.3% at 55.5 cents as prospect of more earnings disappointments weighs, according to Dow Jones.
Singapore’s benchmark Straits Times Index (.FTSTI) fell 1.46% to 2,901.18 points on Tuesday. US stocks on Tuesday in Wall Street’s worst session in three months, on the fear that even with a bailout for Greece, Europe’s debt crisis could spread to other weak euro zone countries.
AusGroup has recorded a 37.5% fall in net profit attributable to equity holders for the three months ending March 31 (3Q FY2010) to A$2.6 million ($3.3 million).
Revenue for 3Q decreased by 15.8% to A$83.8 million mainly due to the continued impact of lower activity levels in the group’s manufacturing and fabrication segments in Australia and Singapore and the construction segment in Australia. Delays in projects by some clients further contributed to the lower revenues registered during the quarter.
AusGroup (5GJ.SG) is up 2.4% at 63.5 cents as stock catches up with other Singapore energy-related plays after trailing sector in past weeks, says Dow Jones.
AusGroup, the energy and resources specialist, says group net profit attributable to equity holders for 2Q FY2010 decreased 33% to A$3.4 million ($4.2 million).
Revenue for 2Q FY2010 decreased 34% to A$85.8 million mainly due to lower activity levels in the group’s Australian manufacturing, fabrication and construction segments which experienced the delayed impact from the global financial crisis.
OCBC Investment Research in a Jan 15 research report says: “We expect AusGroup Ltd to release 2Q10 results in early February. As guided by the group, results are likely to be fairly lackluster, dampened by the order book hole last year. AusGroup said it expected continued weakness in earnings due in part to a more competitive tender market.
AusGroup (5GJ.SG) gained 1.5% at 69.5 cents as at 10:40 a.m. after the energy and resources services company announced a contract win yesterday.
Still, trading volume remains thin, suggesting fairly muted buying interest, with near-term ceiling at 10-day moving average 70.5 cents.
The company says it has secured an integrated services contract from oil & gas client Apache Energy for facilities and offshore assets in Western Australia estimated to be worth around A$5 million ($6.5 million) a year.
The following companies may have unusual price changes in trading today, say Bloomberg and Thomson Reuters. The Straits Times Index gained 0.7% to 2,909.52 last evening.
Technology shares drove Wall Street higher last night on bets ahead of Intel’s quarterly results that business spending will bolster profits in the sector.
Palm oil suppliers: Crude palm oil for March delivery added 0.8% in Kuala Lumpur yesterday, snapping losses of 7.1% in the past five days. Golden Agri-Resources (GGR SP), the world’s second-biggest palm oil producer, gained 0.9% to 59.5 cents. Indofood Agri Resources (IFAR SP), the palm oil unit of Indonesia’s biggest noodle maker, lost 0.8% to $2.40. Wilmar International (WIL SP), the world’s biggest palm oil trader, was unchanged at $7.04.
AusGroup says Australian subsidiary, AGC Industries, has been awarded a multi-disciplinary integrated services contract by Apache Energy.
The contract will consist of general and campaign services, and minor capital works at Apache’s Varanus Island facilities and offshore assets on the North West Shelf, off the coast of Western Australia.
The new contract will start in mid-January for an initial term of three years with two one-year options. The estimated total contract value will be in the order of A$5 million ($6.5 million) per annum.
