TODAY'S HEADLINE 

PEC'S Q4 PROFIT UP 30% BUT FULL'YEAR NET DIVES 

Plant and terminal engineer PEC Ltd posted net profit of $4.6 million for its fourth quarter ended June 30, 2012, up 30 per cent from the previous corresponding quarter's $3.5 million.

Turnover during the final quarter surged 39 per cent to $140.7 million from $101.4 million in the year'ago period.

However, PEC's full'year net profit plunged 64 per cent to $11.4 million from $32.1 million a year earlier because of the impairment of trade receivables, and increased costs and price pressures.

Doubtful debts of about $17.3 million came from Audex'Verwater, PEC's joint venture between its subsidiary Audex and Verwater BV, that built a tank terminal in the port of Rotterdam, Netherlands.

The oil'and'gas engineering specialist ended the full'year with revenue 20 per cent higher year on year at $487.2 million. PEC said the increase "was driven by an expanded pipeline of project works and maintenance contracts".

Earnings per share (EPS) for the fourth quarter was 1.8 cents, up from 1.4 cents last year. EPS for FY2012 was 4.5 cents, a decline from 12.8 cents seen last year. PEC has proposed a dividend of 2.5 cents a share for FY2012.

PEC said its order book as at June 30 was a healthy $258 million, excluding maintenance contracts.

Said PEC: "The current financial year FY2013 is expected to remain challenging as uncertainties in the global economy, pricing competition and cost pressures continue to impact the group's operating margins."

NEWS BUZZ

Oxley Holdings (S$0.40) 
Full-year profit rises 26% despite a weak Q4 
Despite a 73% decline in 4Q earnings to $1.67mil, Oxley Holdings managed to post a 16% increase in revenue to $37.54mil, thanks to a recogni..on of sales of its property development projects, but this was offset by higher costs incurred. EPS was 0.11 cent for Q4, down from 0.42 cent a year earlier. The group has proposed to raise its final dividend to 0.47 cent.

As at Aug 23, the company fully sold 14 of its 20 residen..al, commercial and industrial projects, with a couple more nearing full sales. Its property development projects and rental income from The Corporate Office at Robinson Road are expected to contribute posi..vely to revenue in the next 12 months.

Tiong Woon (S$0.24) 
Ends year with $4.85m net loss as expenses rise 
Tiong Woon reported a net loss of about $4.85mil attributable to equity-holders, compared with a net profit of $951,000 last year while revenue rose 41% to $151.2mil. It attributed this to rising expenses, currency exchange loss and impairment loss on trade receivables. The group maintained its dividend payment at 0.4 cent per share.

Far East Hospitality Trust
IPO 27.6 ..mes subscribed
Far East Hospitality Trust, including a placement tranche of 267.6mil stapled securities - which was approximately 30x subscribed - the total demand of some 8.8bil stapled securi..es under the placement tranche and the public offer (excluding the reserved stapled securities) is about 27.6x subscribed, the 317.6mil stapled securities available for subscrip..on (excluding the reserved stapled securities and assuming the over-allotment option is not exercised), or approximately $8.2bil.

Trading of the stapled securities is expected to commence at 2pm on Monday, Aug 27. The balloting results for the public offer will be released on Friday, Aug 24.

Source: The Business Times

Source: AmFraser