Goldman Sachs downgrades STX Pan Ocean (GZ9.SG, 028670.SE) to Sell from Neutral as the company is the most leveraged to weak bulk spot rates within the bulk shipping sector.
“Furthermore, we think there is execution risk on diversification from its core bulk shipping business, hampering earnings recovery. Aggressive expansion in fleet also heightens the risk of over-investment.”
Singapore-listed Pan Pacific Hotels Group (PPHG.SI) said on Thursday that it has agreed to buy Hilton Melbourne Airport Hotel for a total consideration of A$108.9 million ($141.4 million). Pan Pacific said in a statement to Singapore Exchange that the acquisition of the hotel, which has 276 rooms and is located at Melbourne’s Tullamarine airport, will be financed by bank borrowings and internal resources.
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STX Pan Ocean said in a filing to the Korea Exchange that the investment
Pan Hong Property Group, the Hong Kong-based property developer that focuses primarily on developing properties in the second and third-tier cities in China, says higher finance cost and tax trimmed net profit to RMB22.9 million ($4.4 million) in the three months ended 30 Sept 2010 (2Q2011), a dip of 3.4% from 2Q2010’s RMB23.7 million.
The following companies may have unusual price changes in Singapore trading today. Stock prices are from the previous close. Singapore’s Straits Times Index fell 0.5% to 3,163.53.
Bulk-shipping companies: The Baltic Dry Index, which measures the cost of shipping commodities, fell 0.3% in London yesterday, extending its five-day decline to 1.8%.
The company rose 2.4%, the biggest increase since Oct. 7, to close at 12,700 won in Seoul. The company’s Singapore-listed shares climbed 2.9% to close at $14.76.
STX Pan Ocean Co. advanced in Seoul trading after saying it expects about US$5 billion ($6.5 billion) of revenue from a 25-year contract received from Fibria Celulose SA of Brazil to ship wood pulp. STX shares gained 4% to 12,900 won ($15) as of 9:27 a.m. on the Korea Exchange. The benchmark Kospi gained 0.3%.
Fibria Celulose S.A. is the world’s largest supplier of wood pulp with 30% share of the global wood pulp market.
STX Pan Ocean Co. says it has taken up the contract to penetrate into wood pulp transportation market and secure a stabilised source of profit.
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A foundation-laying ceremony was held in PanÄevo, thus marking the beginning of a safe house construction in this city. The safe house-to-be in PanÄevo will offer protection to women, victims of domestic violence in the South Banat district, providing adequate and secure accommodation at about 270 square meters.
STX Pan Ocean Co. says it has entered into a Consecutive Voyage Contract (CVC) with Posco, the Korean steel maker, to ship coking coal and iron ore worth US$420 million ($561 million).
The transportation of the coking coal and iron ore will take place mainly from Australia to South Korea. The duration of the contract is for 20 years from May 1, 2011 to May 31, 2031.
STX Pan Ocean Co. says the main objective for entering into the CVC is to secure a stabilised source of profit.
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Singapore-listed shipping company STX Pan Ocean said on Tuesday its chief executive officer is being appointed president of its holding company, South Korea’s STX Corp. Sung Yob Choo has resigned as CEO of STX Pan Ocean but will remain a director of the company. The other two existing CEOs will remain in their positions.
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CIMB cuts STX Pan Ocean (GZ9.SG) target price to $13.90 vs $15.60 after lowering FY10-12 earnings estimates by 53%-60% to assume weaker profitability on view operating costs will remain high, according to Dow Jones.
CIMB notes bunker, port, cargo costs +73% on year in 1H10. Keeps Neutral call: “STXPO may perversely benefit from the recent capesize collapse as it has more cargo commitments than available capesize capacity. The mid-2010 expiry of high-cost vessels chartered in before Lehman’s collapse should also help 2H earnings.”
Stock +2.1% at $13.88.
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The Hong Kong-based developer, which is building four properties in the southeastern Chinese cities of Yichun, Fuzhou, Huzhou and Nanchang, plans to boost the amount of real estate it will sell by 50% from 4 million square meters (43 million square feet) in 2009, Executive Chairman Wong Lam Ping said.
Vreme magazine’s Teofil PanÄić went back to writing his column this week, where he described the brutal attack against him over the weekend.
PanÄić was assaulted in a Belgrade city bus by unknown perpetrators who beat him with metal bars.
Pan Hong Property Group, the Hong Kong-based property developer that focuses on developing properties in the second and third-tier cities in China since 1980s, recorded a net profit of RMB13.0 million ($2.6 million) for the quarter ended 30 June 2010 (1Q2011), an increase of 27.4% from RMB10.2 million in 1Q2010.
STX Pan Ocean Co. has entered into a shipbuilding contract with a Chinese to build Kamsarmax bulkers for US$138 million ($190 million). STX Pan Ocean Co. says the construction of these new bulkers is to strengthen the competitiveness of its dry bulk fleet and to secure vessels for the long-term contracts of affreightment (COAs).
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