Boustead

[memphisb]

Some good news to cheer us up in blood bath today.


BOUSTEAD SALCON AWARDED AED55M CONTRACT FOR


FIRST NEW WATER RECYCLING PLANT IN UAE
Singapore, 29 June 2010 – Mainboard-listed Boustead Singapore Limited
(“Boustead”), a progressive global infrastructure-related engineering services and geospatial
technology group today announced that its wholly-owned subsidiary, Boustead
Salcon Water Solutions Pte Ltd (“Salcon”) – a leading global specialist in water and
wastewater engineering – has been awarded an AED55 million (approximately S$21
million) contract to design, engineer and construct a new water recycling plant for the
enhanced treatment of treated sewage effluent (“TSE”) in Abu Dhabi, the United Arab
Emirates. The announcement was made at the ongoing Singapore International Water
Week 2010, where Salcon is currently featured as a Founding Sponsor.

The contract for the Al Wathba Enhanced Treated Sewage Effluent Treatment Plant (the
“TSE Plant”) was awarded to Salcon by Abu Dhabi Sewerage Services Company
(“ADSSC”). The contract will be administered and the Plant will be operated by ADSSC
and the Environment Agency-Abu Dhabi respectively.
The TSE Plant will have a treatment capacity of 6 million gallons per day (approximately
27,712 cubic metres per day) and will comprise processes including strainer, ultrafiltration
treatment and ultra-violet light disinfection. Upon completion, the TSE Plant
will be able to recycle and recover as much as 95% of the TSE supplied, producing high
quality TSE water for agricultural irrigation and horticultural landscaping. The TSE Plant
will be the first of its kind in the United Arab Emirates and will provide a sustainable
supply of water for the emirate’s horticultural requirements. By increasing water
efficiency through the recycling process, the TSE Plant will also help to minimise the
environmental impact of TSE.

The contract includes a five-year operations and maintenance agreement. Plant
operations will be managed by an advanced integrated control system and SCADA
(supervisory control and data acquisition) system to ensure operating efficiency,
reliability and safety of the integrated operations.
For the design, engineering and construction of the plant, Salcon will draw on its
expertise and experience gained from its turnkey EPC role in the 55,000 cubic metres
per day Phase II Extension of Bedok NEWater Factory, owned and operated by PUB, the
national water agency of Singapore. The Phase II Extension for Bedok NEWater Factory
is a world-class showcase for PUB and Singapore, and is the first plant in the world to
utilise commercial 16-inch reverse osmosis membranes.
Mr Tan Kwee Kok, Chief Executive Officer of Salcon said, “We are delighted that ADSSC
selected Boustead Salcon Water Solutions to deliver the landmark Al Wathba Enhanced
TSE Treatment Plant, the first of its kind in the UAE. ADSSC is one of the most forwardlooking
water agencies in the Middle East and this project confirms its intentions to
retain its position by deploying the latest technologies in water recycling. This is an
important step in water conservation and sustainability in one of the most water
stressed regions of the world. We are also pleased to highlight this project during this
year’s Singapore International Water Week. Singapore continues to be a global leader in
water and wastewater management practices, and the technologies that will be deployed
at the Al Wathba Enhanced TSE Treatment Plant are already in use by PUB at its
NEWater Factories.”

Mr Tan added, “We are very grateful to IE Singapore and PUB for the continuous support
that they have provided to us. These government agencies have paved the way for our
penetration into the Middle East, which we view as a long-term strategic market. IE
Singapore has also been instrumental in helping us to strengthen our international
presence.”
Mr Lim Ban Hoe, Group Director for Middle East and Africa at International Enterprise
Singapore said: “As a country who has managed to address water scarcity issues,
Singapore is well-placed to help address water resource issues in the Middle East. We
are proud of Boustead Salcon Water Solution’s achievement and contribution of water
management capabilities to the Middle East. This is certainly a testament of Singapore
companies and their capability to address global requirements of their business partners
on an international level.”

Mr Ng Han Tong, Director of Industry Development at PUB said, “PUB is delighted that
Boustead Salcon Water Solutions is able to leverage on its proven track record with PUB
to secure this project in Abu Dhabi, the UAE.”

As a Founding Sponsor of the Singapore International Water Week (“SIWW”) in 2008,
Salcon is currently featured at the ongoing SIWW 2010, which runs from 28 June to 2
July 2010. The SIWW is a global platform for industry leaders, practitioners and policy
makers to showcase their latest water technologies, exchange enriching insights on
industry trends and offer partnership opportunities in the key emerging water markets.

-- End of media release --

[Musicwhiz]

Was there a blood bath today? Means there's some good chances to pick up shares cheaply.

[Zed18]

Was there a blood bath today? Means there's some good chances to pick up shares cheaply.

40pts. HK was down almost 500pt. May have been the conference board "calculation error" that triggered it. Don't know man. Worried about the possibility of a reversal. Breaking out of the short-term uptrend already.

[Musicwhiz]

Zed18,

I won't worry so much if I were you. Company's cash flow looks solid, and Balance Sheet looks good too. As for short-term manic movements of Mr. Market, I just watch from a corner. If I see chances to take advantage of it, then I will. Otherwise, just ignore.

[memphisb]

Exercise of Share Options/Convertibles

TONG WENG LEONG

No. of Shares which are subject of this notice 200,000
As a percentage of issued share capital 0.04 %

No. of shares held before the change 2,797,936 1,216,000
As a percentage of issued share capital 0.55 % 0.24 %
No. of shares held after the change 2,997,936 1,216,000
As a percentage of issued share capital 0.59 % 0.24 %

[millionairemind]

Boustead Singapore
June 30 close: S$0.850
DBS Group Research, June 30

BOUSTEAD Singapore's wholly owned subsidiary, Boustead Salcon Water Solutions Pte Ltd, has been awarded a 55-million-dirham (S$21 million) contract to design and build the first new water-recycling plant for the enhanced treatment of treated sewage effluent in Abu Dhabi, in the United Arab Emirates. The contract value includes a S$5 million five-year operations and maintenance agreement. This contract is awarded to Salcon by Abu Dhabi Sewerage Services Company. The plant will have a capacity of six million gallons per day (or about 27,700 cubic metres per day).

This project is expected to start in July 2010 and to be completed two years later. Hence, Boustead is expected to record some 30-40 per cent of the engineering, procurement and construction contract value (S$5.6 million) to FY2011 sales and the remainder in FY2012. This contract, together with some unannounced contracts amounting to S$35 million, accounts for 12.8 per cent of our FY2011 new win forecast of S$400 million.

While this contract may not be big in value, it is a significant step to open doors for more opportunities of recycled water projects in the Middle East region, now that the UAE is finally receptive to the use of recycled water for irrigation and horticulture instead of a complete ban on the use or consumption of recycled water. If this water-stressed region can allow and migrate the use of recycled water for industrial application, then we believe that there will be more recycled water projects to come in the future.

Maintain 'buy' with TP of S$1.10.
BUY

[Musicwhiz]

Thanks MM. It would seem that Salcon is focusing their efforts on the Middle East, with some success already! Let's hope it will be another profitable year (i.e. FY 2011) for Salcon......

[Musicwhiz]

Dear all, Part 2 of my analysis of Boustead's FY 2010 Financial Statements is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"For the Water and Wastewater division (i.e. Salcon), the turnaround finally came in FY 2010 with the division registering revenues of S$54.9 million, 105% higher year on year. While it is commendable that profitability has been finally achieved for Salcon after years of “restructuring” and legacy issues impacting the bottom line, one question I have is whether this profitability is a one-off thing (judging from the description of some of the items contributing to the profits for FY 2010), or whether it can be consistently sustained in future periods?"

[Musicwhiz]

Dear all, Part 3 of my analysis of Boustead's FY 2010 Financial Statements is now up on my blog. It also contains the entire transcript of Boustead's FY 2010 audiocast. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"For water and wastewater engineering division, it appears that those thorny legacy issues have finally been ironed out after many years of restructuring and legal wrangling. Salcon reported a turnaround in FY 2010 and FF Wong has also stressed that the cost base has been kept low, so that even an order book of “just” S$20 million will enable Salcon to turn in a profit."

[eauyong]

Boustead Singapore's Q1 net profit more than tripled to S$31.9m
By Ephraim Seow | Posted: 12 August 2010 2150 hrs

SINGAPORE : Mainboard-listed engineering firm Boustead Singapore said its net profit more than tripled on-year to S$31.9 million for the first quarter ended June.

Revenue doubled to S$239 million.

The group said the revenue growth was mainly due to the downstream oil & gas business, which saw a robust recovery in its order book.

It also said the Real Estate Solutions Division was the largest revenue contributor at S$168.8 million.

This is an increase of 137 per cent and is partly due to the S$67.8 million sale of IBM Singapore Technology Park.

Going forward, Chairman and Group CEO of Boustead Wong Fong Fui said the group is looking to utilise its net cash of S$195.5 million to make additional strategic acquisitions.

He added that the group's order book backlog of over S$580 million should see it smoothly through the current 2011 financial year, which it expects to be better than the previous year. - CNA /ls