Rotary Engineering

Re: Rotary Engineering

Postby millionairemind » Wed Nov 04, 2009 7:15 pm

November 4, 2009, 11.04 am (Singapore time)

Rotary's Q3 net profit up

By ANGELA TAN

Rotary Engineering Limited on Wednesday reported net profit for the three months to end September rose 11 per cent to S$10.73 million.

Revenue for the third quarter slipped 8 per cent to S$108.78 million as several projects were completed and new projects have yet to generate significant revenue.

The group was hit by increased in operating costs due in part to the provisions for doubtful debt.

As a result, net profit for the nine months fell 11 per cent to S$28.08 million
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Re: Rotary Engineering

Postby winston » Thu Nov 05, 2009 8:50 pm

Not vested. From CIMB:-

Rotary Engineering (S$1.02) - 3Q09 results - Expect stronger 4Q

Results met expectations; maintain Outperform. Although 3Q09 net profit of S$11m
(+11% yoy) forms only 22% of our FY09 forecast and 23% of consensus, we consider the
results to be in line as we are expecting a much better 4Q09 from higher recognition of
contracts.

9M09 net profit forms 56% of our full-year forecast. Our earnings estimates are unchanged. Our target price of S$1.92, still based on 11x CY11 P/E, in line with its 5-year average. Further margin expansion, order wins in the Middle East, and projects in ASEAN are expected to provide mid-term catalysts.

Dip in revenue. 3Q09 revenue was S$109m, down 8% yoy, as fewer project milestones were reached in the quarter and new contracts have yet to generate material revenue. Revenue from the Jubail (SATORP) refinery project in Saudi Arabia is expected to come through in 4Q09.

Improved gross margins. 3Q09 gross margins of 25% were much higher than our estimate of 23%, aided by cost savings realised at the end of projects. Management maintains its guidance of 18-22% for gross margins but we expect positive surprises in 4Q09.

Update on SATORP. Currently, 18% of SATORP’s engineering phase has been completed. Completion of the entire engineering phase is expected in 2Q10, and construction should start in 2H10. Procurement of materials is underway, and is expected to stretch over the entire project.

Order book at record S$1.4bn; strong tendering in Middle East and ASEAN. Rotary will be tendering for EPC jobs for the Wasea plant and Yanbu project in Saudi Arabia (US$10bn) in 4Q09 and 1Q10 respectively.
Contract awards for Yanbu are expected in 2Q10.

Any contracts secured from Yanbu will likely contribute from 2011. We believe Rotary has the capacity to take on an additional S$1bn of EPC work. The S$105m contracts it has secured within ASEAN from Jul 09 indicate a revival of petrochemical and oil & gas spending.
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Re: Rotary Engineering

Postby winston » Thu Sep 30, 2010 7:53 pm

Not vested. From CIMB:-

Rotary Engineering - Order wins fall short of expectations

We downgrade Rotary from Outperform to Neutral. YTD, Rotary has not secured any significant orders vs. our expectation of S$250m for FY10. Our order-win assumptions now appear aggressive and we cut them to S$300m from S$500m for FY11-12.

We now do not expect Rotary to secure any contracts this year. As a result, we cut our earnings estimates by 14-23% for FY11-12. Our target price drops to S$0.95 from S$1.17 following our earnings adjustments, and as we roll forward our valuation to 8.5x CY12 P/E (5-year peer average) from 8.5x CY11 P/E.

With order-win disappointments and no clear re-rating catalysts in the near term, we downgrade Rotary to Neutral. We would revisit the stock should BOO projects bear fruit earlier than expected or margins surprise positively.
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Re: Rotary Engineering

Postby winston » Tue Oct 05, 2010 9:40 am

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RESEARCH ALERT-Phillip initiates Rotary at "buy",target S$1.35

SINGAPORE, Oct 5 (Reuters) - Phillip Securities has initiated coverage of Singapore's oil and gas services firm Rotary Engineering with a "buy" rating and target price of S$1.35.

Rotary has an established track record of project completions, and had an annual revenue growth of 18 percent over the last 10 years, Phillip Securities said in a report.

It noted that Rotary clinched its largest contract in history to build a refinery tank farm in Saudi Arabia for S$1.1 billion.

"We believe that this foothold into Saudi Arabia would be a strong foothold for its subsequent ventures into the rest of the Middle East and offers excellent geographical diversification from its (Southeast Asia) business," said Phillip.

Source: Reuters
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Re: Rotary Engineering

Postby winston » Wed Oct 27, 2010 7:10 pm

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S'pore Rotary Engineering wins US$250m deal in UAE

SINGAPORE - Singapore oil and gas infrastructure services firm Rotary Engineering said on Wednesday it had won a US$250 million contract to build a petroleum storage facility in the United Arab Emirates.

The engineering, procurement and construction contract to build the facility with a capacity of 1.1 million cubic metres in Fujairah was awarded by Singapore-based oil trader Concord Energy.

'This important contract helps to strengthen our foothold and extends our market presence in the Middle East,' said Rotary's chairman and managing director Chia Kim Piow.

Work is expected to start in the first quarter of 2011 and completion is targeted for the fourth quarter of 2012.

Source: REUTERS
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Re: Rotary Engineering

Postby winston » Thu Oct 28, 2010 6:23 pm

Not vested. From CIMB:-

Rotary Engineering - Order surprise

We upgrade Rotary to Outperform from Neutral. Rotary has secured an engineering, procurement and construction (EPC) contract for about S$325m to build a petroleum storage facility in the UAE.

The contract came earlier than expected as we were expecting order flows only in 1H11. We increase our order-win assumptions to S$700m from S$600m for FY11-12.

Following this, our earnings estimates rise by 8- 20% for FY11-12 while our target price climbs to S$1.15 from S$0.95, still based on 8.5x CY12 P/E (5-year average).

The contract has reaffirmed Rotary’s foothold in the Middle East, a clear advantage over peers, PEC Ltd (PEC SP, Outperform, S$1.16) and Hiap Seng (HSE SP, Outperform, S$0.69).

We see catalysts from announcements of further orders.
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Re: Rotary Engineering

Postby winston » Thu Nov 04, 2010 8:33 am

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ROTARY ENGINEERING - Singapore oil and gas infrastructure services provider Rotary Engineering said on Thursday its third-quarter net profit fell 4 percent to S$10.2 million from a year ago mainly on higher operating expenses and foreign exchange loss.


Source: Reuters
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Re: Rotary Engineering

Postby winston » Thu Jan 06, 2011 1:45 pm

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Oil and gas services firm Rotary Engineering rose as much as 6.9 percent on expectations it is set to benefit from a brighter outlook for the oil and gas industry this year.

By midday, shares of Rotary were up 5.9 percent at S$1.08 with 11.4 million shares changing hands.

Source: Reuters
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Re: Rotary Engineering

Postby winston » Thu Feb 24, 2011 8:25 am

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ROTARY ENGINEERING - Singapore oil and gas services firm Rotary Engineering said on Thursday its fourth quarter net profit rose 3 percent year-on-year to S$27.1 million.

Revenue increased 9 percent to S$160 million as work on overseas projects progressed.


Source: Reuters
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Re: Rotary Engineering

Postby nutty » Tue Apr 12, 2011 12:10 pm

Something is brewing?

SINGAPORE - Singapore's Rotary Engineering , a construction firm that specialises in energy projects, said Chief Financial Officer Koh Thong Hean has tendered his resignation and will leave the firm on May 3.

Koh, CFO since February 2009, is quitting to pursue another career opportunity, the company said.

Group Financial Controller Cheong Yew Meng will oversee the finance functions of the firm for the time being, Rotary said in a filing to the Singapore Exchange.
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