By CAI HAOXIANGhaoxiang@sph.com.sg

INTRACO, the pedigreedtrading company on the Sin-gapore Exchange (SGX)mainboard that has lan-guished after the excite-ment of a 2012 takeoverfight, swung to the blacklast year on one-off gainsamid a business restructur-ing.

The company recordeda net profit of $1.1 millionfor the fiscal year ended

Dec 31, 2013, comparedwith an $8.9 million loss ayear earlier. Revenue fell21 per cent to $128 million.

The company said yes-terday that a joint ventureit is in to operate a cranerental and distribution busi-ness in Myanmar is expect-ed to start operating inMay.

CEO Foo Der Rong toldThe Business Times thatthe streamlining and re-structuring of Intraco’sbusiness lines were “mostlycompleted”. “The companyis now working hard toseek out opportunities thatwill strengthen its businessboth locally and in the re-gion, to ensure its long-term sustainability,” hesaid.

Intraco’s net profit wasboosted by $2.2 million in“other income”. This includ-ed a $1.3 million write-back of inventory to net

realisable value followingthe successful sale of sea-food inventory by a subsidi-ary, a reversal of provisionfor claims of $0.4 million,and a foreign exchangegain of $0.2 million fromthe strengthening of the USdollar against the Singa-pore dollar.

Net profit also includeda final distribution of$863,000 from an invest-ment liquidated last year.

The results come aftertwo years of losseswhen the companywrote down invento-ry and made provi-sions for doubtful re-ceivables.

I n t r a c o w a sformed in 1968 bythe government to ex-port locally manufac-tured products andsource for raw mate-

rials, commodities andgoods. Listed in 1972, thecompany went on to spear-head Singapore’s tradewith Eastern Europe, theformer Soviet Union, Africaand the Middle East.

But the company’s per-formance in the past 10years was mediocre and in-vestors lost interest. In2012, business tycoon OeiHong Leong and TH Invest-ments, the investment vehi-cle of the family controllingcrane company Tat Hong,both tried to take over thecompany. TH Investmentseventually won and is nowIntraco’s largest sharehold-er with a 29.87 per centstake.

Today, Intraco tradesplastics, seafood and tele-communications, with aprojects segment that spe-cialises in lightings.

Its trading segment re-corded a profit before tax of

$1.4 million, largely due tothe inventory write-back.

The projects segment re-ported profit before tax of$0.5 million, due mainly tothe recognition of a $0.4million profit from a projectand a provision for claimwrite-back of $0.2 million.

Intraco said its businessenvironment will be chal-lenging due to competitionand the uncertain globaleconomy. The company,which is thinly traded, has$51 million of cash atend-2013, more than itscurrent market value of$41 million.

Earnings per share for2013 were 1.16 cents, com-pared with a loss per shareof nine cents in 2012. Netasset value per share atend-2013 was 63 cents.

Intraco closed un-changed at 42 cents yester-day.

By JOYCE HOOI

joyceh@sph.com.sg

SEMBCORP Marine’s rig-building projects and otheroperating income pushedits fourth-quarter net profit9.2 per cent higher to$182.4 million.

Excluding non-operat-ing items, the group’s netprofit for the quarter was45 per cent higher, againstthe $126 million posted ayear ago.

Its top line was 22.8 percent higher at $1.69 billion,boosted by higher revenuerecognition coming out ofits rig-building segment.

For the full year endedDec 31, 2013, net profitwas up 3.2 per cent at$555.7 million, on the backof revenue that was 24.7per cent higher at $5.53 bil-lion.

For the fourth quarter,the group’s rig-building seg-ment put in the best per-formance of the main divi-sions, with revenue grow-ing 37.6 per cent to $1.19billion.

This was driven by the

initial recognition of the sec-ond unit of Sembcorp Ma-rine’s repeat drillship de-sign, one accommodationsemi-submersible rig andtwo jack-up rigs.

For the year, a total ofeight jack-ups rigs were de-livered.

But this was partially off-set by its offshore and con-version segment which sawits fourth-quarter turnoverfall 5 per cent to $313.6 mil-lion. The group attributedthis to the timing of projectsthat saw progressive reve-nue recognition.

Revenue from its repairsegment inched down 2.6

per cent to $163.1 million,also due to the timing in rec-ognition of repair and up-grade projects.

The group has a net or-der book of $12.3 billionwith completion and deliv-eries stretching into 2019.This includes the $4.2 bil-lion in contracts secured in2013, excluding repair andupgrade contracts.

Sembcorp Marine is pro-posing a final ordinary cashdividend of six cents pershare as well as a final spe-cial cash dividend of twocents a share, the same asin the year before.

Taken together with the

interim cash dividend offive cents a share, thiscomes up to 13 cents for2013 – unchanged from2012.

The 2013 dividend rep-resents a dividend payoutratio of 49 per cent, against50 per cent in 2012.

Earnings per share forthe quarter and year were8.73 cents and 26.61 centsrespectively, up from eightcents and 25.81 cents inthe corresponding periodsin the previous year.

Citing the “fragile anduncertain” state of the econ-omy, “competitive land-scape” and tight labour sup-ply, Sembcorp Marine not-

ed that margins remainchallenging.

Even so, the group saiddemand remained “strong”for its big docks, includingthe four very large crudecarrier drydocks that start-ed operations at Phase 1 ofits new integrated Tuasyard last August.

Construction of Estalei-ro Jurong Aracruz, Semb-corp Marine’s shipyard inBrazil, remains on track tostart initial operations inthe second half of this year,the group added.

The counter closed twocents higher at $4.09 yester-day, before the results werereleased.

By NISHA RAMCHANDANInishar@sph.com.sg

RAFFLES Medical Group’s(RMG) net profit for the 12months ended Dec 31,2013 surged 49.3 per centto $84.89 million, boostedby higher revenue and again on disposal of a subsid-iary.

Revenue increased 9.4per cent to $340.99 millionas revenue from its hospitalservices and its healthcareservices grew 12.4 per centand 6.2 per cent, respective-ly. These were on the backof higher patient loads andgreater patient acuity,more specialist consult-ants, increased contribu-tions from overseas opera-tions, as well as provisionof more healthcare insur-ance services.

Revenue from invest-ment holdings fell as the

tenancy leases for ThongSia Building at BidefordRoad were progressivelyended ahead of the dispos-al of the group’s subsidiary,Raffles Medical Manage-ment (RMM), now knownas Orchard InvestmentHoldings, on Oct 31.

The group divested itselfof RMM – which owned theunits in the commercial po-dium of Thong Sia Building– after it failed to secure thenecessary government ap-provals for a specialist med-ical centre.

Excluding the $20.4 mil-lion gain from the disposalof RMM and the $3.9 mil-lion fair value gain on in-vestment properties, theproforma increase inpost-tax net profit wouldhave been 14.5 per cent to$61 million.

Earnings per share roseto 15.43 cents from 10.53cents previously.

RMG did not releaseearnings figures for itsfourth quarter.

The group’s directorsare recommending a finaldividend of four cents pershare which, including theinterim dividend of onecent, takes the total divi-dend payout for the finan-cial year to five cents pershare.

Loo Choon Yong, execu-tive chairman of RMG, said:

“Other than the projects inSingapore, we are expand-ing our operations in Chi-na. These translate into apipeline of growth for thegroup for many years tocome.”

CIMB analyst Gary Ngsaid in a research note:“We see its entry into Chi-na’s private healthcare in-

dustry with strong JV (jointventure) partners as a signof its regional ambitions.Rising healthcare consump-tion, local expansion andsuccessful JVs to develop in-tegrated international hos-pitals in China are stock cat-alysts, in our view. Further-more, there could be as-set-unlocking in the longerterm.”

Cash and cash equiva-lents stood at $265.9 mil-lion as at end-December,up from $102.4 million ayear earlier, boosted by theproceeds from the disposal,as well as cashflow generat-ed from operations.

The counter closed un-changed at $3.31 yester-day.

By GRACE LEONGgleong@sph.com.sg

IMPAIRMENT charges total-ling US$20.8 million sentRickmers Maritime’s earn-ings into the red, with netlosses of US$8.04 millionfor the fourth quarter end-ed Dec 31, compared withnet profit of US$2.24 mil-lion a year earlier.

The company postedFY2013 profit of US$23.5million, down 15 per centfrom the preceding year’sUS$27.6 million.

Consistent with previ-ous quarters, the businesstrust maintained its distri-bution per unit (DPU) forQ4 at 0.6 US cent, to bepaid on March 27.

“The trust remained op-erationally robust, report-ing adjusted Ebitda ofUS$26.7 million in 4Q2013and US$104.5 million inFY2013, broadly in linewith the US$26.8 millionand US$106.2 million re-ported in the previous cor-responding quarter andyear respectively,” saidRickmers.

The trust, which ownsand operates containerships, cited a US$2.4 mil-lion provision for vesselimpairment, and goodwillimpairment charges ofUS$18.4 million for thequarter.

“The impairment total-

ling US$20.8 million arosedue to lower projectedlong-term charter rates, toreflect the prevailing mar-ket conditions as at 4Q13,”said Rickmers.

Excluding the impair-ment loss, the companywould have posted net prof-it of US$12.7 million for thefourth quarter, up fromUS$8.8 million a year ago.

Charter revenue for thequarter remained steady at$36.37 million, a tad high-er than $36.28 million ayear earlier, while FY2013revenue dipped one percent to US$143.5 millionfrom US$144.3 million dueto a reduction in charterrates earned by the vesselKaethe C. Rickmers.

“The actions we havetaken in recent months, cou-pled with Rickmers Mari-time’s fundamentallystrong structure, have en-abled the trust to weatherthe challenging conditionsstill faced by the shippingindustry. We will continuethe process of strengthen-ing our balance sheet, andpositioning ourselves totake advantage of opportu-nities in the market whenthey arise”, Thomas Preb-en Hansen, chief executiveofficer Rickmers Trust Man-agement, said.

Rickmers Maritimeunits closed trading yester-day unchanged at $0.285.

By JAMIE LEE

leejamie@sph.com.sg

SUPER Group, whose stock is now

trading at $3.90, has proposed a

one-for-one bonus share issue to

boost trading liquidity. The reasons

the maker of instant beverages cited

for the move include boosting trading

liquidity and reflecting growth and ex-

pansion of its business.

The group yesterday posted a 6

per cent increase in net profit for its

fourth quarter ended Dec 31, 2013,

on the back of a stronger gross profit

margin, forex gains and a disposal

gain. Net profit for the quarter was

$22.6 million, up from $21.2 million

from a year ago, the company said

yesterday. This translated to earnings

per share of 4.05 cents, up from 3.81cents a year ago. Revenue was almostflat, with sales for Q4 at $153 million,against $155 million a year ago.

The group saw a 3 per cent lift insales of products such as coffee andcup noodles to $91.3 million, thoughthis was more than offset by the 7 percent decline in sales of food ingredi-ents such as non-dairy creamer to$62 million. Gross profit was up 8 percent at $57.7 million, thanks to costmanagement.

The group also got a $3.76 millionboost in Q4 under its “other income”segment, up from $250,000 a yearearlier. This came partly from a for-eign exchange gain of $1.2 million – aresult of the appreciation of the USdollar against the Singapore dollar –

and a disposal gain of $1.8 million, af-ter an overseas subsidiary disposedof its leasehold land to Wuxi TianFeng Food Ingredient (WTF) as con-sideration for a 14.2 per cent equityinterest in WTF.

For the full year, Super posted a26 per cent increase in net profit to$100 million. Revenue was up 7 percent at $557 million, while gross prof-it margin rose three percentagepoints to 38 per cent. It also recordedforex gains of $2.1 million and a$17.1 million gain from a disposal ofSun Resources Holdings, a former as-sociate, as other income.

The company proposed a secondand final dividend of seven cents pershare for the year. Super’s closingstock price of $3.90 yesterday was arise of 5.4 per cent.

Ready to roll: Fourth-quarter and full-year earningsfor the maker of instant beverages rise, helped in partby higher gross profit margin. FILE PHOTO

By MINDY TANtanmindy@sph.com.sg

COSCO Corp’s net profit forthe full year ended Dec 31,2013, slid 71 per cent to$30.6 million from $105.7million.

This came on the back ofa 6 per cent decline in reve-nue to $3.51 billion and a34 per cent fall in grossprofit to $321.2 million.

The fall in turnover waslargely due to lower ship-yard revenue, said themainboard listed groupwhich deals in offshore ma-rine engineering, shipbuild-ing, ship repair and conver-sion, and dry bulk ship-ping.

Turnover from shipyardoperations fell 6.1 per centto $3.5 billion from $3.7 bil-lion a year ago, as a resultof lower revenue contribu-tion from the ship repairand shipbuilding segments.This more than offset thegrowth in revenue from themarine engineering seg-ment.

Turnover from dry bulkshipping and other busi-nesses inched up 3.6 percent, from $53.7 million to$55.6 million.

Earnings per share fellfrom 4.72 cents to 1.37cents, while net asset valuerose from 57.23 cents to59.65 cents as at end-De-cember.

As at Dec 31, thegroup’s order book stood atUS$7.8 billion with progres-sive deliveries up to 2016.

Cash and cash equiva-lents increased from $1.7billion to $2 billion, mainlydue to an increase in bankborrowings procured to fi-nance shipyard operatingactivities.

Looking ahead, operat-ing margins on new ship-building projects are expect-ed to continue to be undergreat pressure, said Wu ZiHeng, vice-chairman andpresident. This is becausethe shipbuilding contractsthe group is beginning con-struction on were securedsince 2011 at low contractvalues due to the slumpingshipping market at thattime.

“With the many uncer-tainties still clouding theglobal economy, our groupis prepared for a market-place fraught with limitedvisibility. We will continueto increase our competitive-ness by improving produc-tivity and capability to helpthe group mitigate adverseindustry conditions,” saidCapt Wu.

A dividend of one per or-dinary share was pro-posed, versus two cents perordinary share in the previ-ous financial year.

Cosco’s counter closedhalf a cent lower at 70.5cents yesterday.

China Fishery can meethigher financing needsCHINA Fishery Group, thesubsidiary of frozen fishsupplier Pacific AndesResources Development,has enough liquidity tomanage higher financingneeds this year despite arecent acquisition, saidFitch Ratings. This isbecause of continued banksupport and likely higheroperating cash-flowgeneration, said Fitch. Theratings agency has anegative outlook on thecompany, which it rates asa BB-, or speculativegrade. China Fisheryacquired Peru’ssecond-largest fishingcompany, Copeinca, lastyear for US$778 million,which led to a higher riskprofile, said Fitch. But itwas helped by healthyoperating cash flow from asuccessful Peruviananchovy fishing season

that just concluded, Fitchsaid.

RH Petrogas announcesUS$13.8m write-offIN A profit-guidanceupdate for the fourthquarter ended Dec 31,2013, RH Petrogasannounced a write-off ofsome US$13.8 million fortwo unsuccessfulexploration wells inIndonesia, one in the BasinPSC and the other in theSalawati Kepala BurungPSC (Island PSC). Thegroup also carried out areassessment of thegoodwill which arose fromits acquisition of theworking interests in theBasin PSC and Island PSC.As a result, it will write offgoodwill of around US$29million.

OKP Hldgs’ Q4 profitdives 62.1% to $1.44mOKP Holdings reported a

net profit of $1.44 millionfor the fourth quarterended Dec 31, down 62.1per cent year on yeardespite a 29.1 per centincrease in revenue to$35.47 million. For the fullyear, net profit worked outto $4.8 million, 61.1 percent lower from thefinancial year a yearearlier, while revenuejumped 22.8 per cent to$128.27 million. The firmis declaring a finaldividend of $0.003 pershare.

Kian Ho Bearings’earnings rise 10%KIAN Ho Bearings earneda net profit of $1.28million for the financialyear ended Dec 31,representing an increaseof 10 per cent from theprevious year, whilerevenue shrank 8 per centto $78.75 million. Adividend of 0.2 cent pershare has been declared.

Company proposesfinal cash dividendof 8¢, the same asin the year before

Super Group’s profit up; proposes bonus issue

Dr Loo: ‘Other than the projects in Singapore, we are expanding our operations in China. These translate into apipeline of growth for the group for many years to come.’ ST FILE PHOTO

Jump attributed tohigher revenue, gainon sale of subsidiary

COMPANY BRIEFS

Weighed down: Lower projected long-term charterrates lead to US$20.8 million impairment. FILE PHOTO

One-off gains put Intracoin the black for FY2013

SembMarine’s Q4 profit up9.2%, boosted by rig-building

Rickmers postsUS$8m Q4 loss

Net profit included afinal distribution of$863,000 from aninvestmentliquidated last year.

Cosco Corp’s full-yearnet tumbles 71%

Raffles Medicalnet profit up49% at $84.9m

4 COMPANY NEWS

The Business Times, Tuesday, February 25, 2014