Boustead

[Musicwhiz]

Boustead awarded S$68m contracts globally
By Ephraim Seow, Channel NewsAsia | Posted: 04 January 2010 2145 hrs

SINGAPORE: Mainboard-listed Boustead Singapore said that its energy-related engineering division has secured contracts worth S$68 million.

These are for projects in the oil and gas industry.

These include design, process engineering and construction of process equipment for oil refineries, gas processing plants, petrochemical facilities and power plants.

The projects will be based in Australia, Brazil, Saudi Arabia and the United Kingdom.

These deals came shortly after Boustead was awarded its largest contract, a S$107 million contract to design and build an integrated facility for a world-leading power systems corporation.

These contracts will raise Boustead's order book by S$175 million to more than S$500 million in two weeks.

The company said that the projects will not have an impact on its profitability in the current financial year ending March 2010.

However, the contracts are expected to have a positive impact on the company's earnings next year. - CNA/vm

[kennynah]

so by right, left, centre, top and below...

boustead is a buy and sure win counter lah....is it?

[Musicwhiz]

so by right, left, centre, top and below...

boustead is a buy and sure win counter lah....is it?

Why is it so certain that it's "buy and sure win"?

For every purchase one still needs to evaluate the financials, business model, prospects, fundamentals etc to determine if there's reasonable margin of safety.

[kennynah]

i was asking you bro...

presumably the status of the company hasnt changed much, except that it's been winning deals ...i then suppose this must enhance the prospects of making more profits ?? no?

[Musicwhiz]

i was asking you bro...

presumably the status of the company hasnt changed much, except that it's been winning deals ...i then suppose this must enhance the prospects of making more profits ?? no?

Hehe, well that's an oxymoron - the status of a company WILL change if it wins deals because it affects the fundamentals of the firm once this occurs. As to whether it can enhance the prospects of profits, one must observe the gross and net margins on such deals; and also project the prospects for more such deals.

For Boustead's case, I would hazard a guess that there will be more O&G deals to come, and maybe 1-2 more real-estate solution deals in 1H 2010 (this straddles 4Q FY 2010 and 1Q FY 2011 as the company has a March year-end).

[kennynah]

what i meant was that given the roughly static financial ratios in between these 2 major deals, this latter deal can only serve to make them a better prospect for investment. especially, if one is already of the opinion that boustead is a good bet before this latest deal was sealed. in other words, given everything non-variable, with additional deals, how can this not make the company richer? (unless u are saying they contract this deal on a loss intentionally)

is it not correct?

otherwise, what then, other than the company making money, can sway an investor to determine if a company is worth investing in?

no need to complicate my query... all i am asking is...

with this added deal, does it not make boustead a better investment than before this deal?

[Musicwhiz]

what i meant was that given the roughly static financial ratios in between these 2 major deals, this latter deal can only serve to make them a better prospect for investment. especially, if one is already of the opinion that boustead is a good bet before this latest deal was sealed. in other words, given everything non-variable, with additional deals, how can this not make the company richer? (unless u are saying they contract this deal on a loss intentionally)

is it not correct?

otherwise, what then, other than the company making money, can sway an investor to determine if a company is worth investing in?

no need to complicate my query... all i am asking is...

with this added deal, does it not make boustead a better investment than before this deal?

Haha, ok I see. To keep things simple, answer is "Yes".

[kennynah]

i agree....

[memphisb]

Surprised that MW did not update. Here goes.

BOUSTEAD SUBSIDIARY AWARDED S$11M IN WATER & WASTEWATER CONTRACTS FROM POWER INDUSTRYSingapore, 1 February 2010

Boustead Singapore Limited (“Boustead”) is pleased to announce that its wholly-owned subsidiary, Boustead Salcon Water Solutions Pte Ltd (“BSWS”) – a leading global specialist in water and wastewater treatment – has been awarded S$11 million in two separate contracts from the power industry.

The first contract was awarded to BSWS by Lilama Corporation (“Lilama”) – one of the largest state-owned infrastructure engineering corporations in Vietnam – for the design, process engineering and construction of water and wastewater treatment plants for the Vung Ang 1 Thermal Power Plant (“Vung Ang”), a 2 x 600MW coal-fired thermal power plant that will be operated by Vietnam Oil & Gas Group (“PetroVietnam”) in Ha Tinh,
Vietnam.

Although BSWS has successfully completed more than 15 projects in Vietnam, this will be the first project in the power industry there. Vung Ang has been identified as one of 16 key power plant developments under the National Power Development Plan that runs until 2015.

The second contract was awarded to BSWS by Toshiba Plant Systems & Services Corporation (“TPSC”) for installation and commissioning services related to an ongoing project for the Tanjung Jati B Power Plant (“Tanjung Jati B”) in Central Java, Indonesia.

BSWS is currently completing a 21,160 cubic metres/day desalination plant, among other types of water and wastewater treatment plants at Tanjung Jati B for Toshiba Corporation, the world’s largest power plant engineering corporation.

Mr Tan Kwee Kok, Chief Executive Officer of BSWS said, “We are honoured that Lilama selected Boustead Salcon Water Solutions to deliver the water and wastewater treatment facilities for one of Vietnam’s key power plant developments under the National Power Development Plan. It is a testimony to our quality that we secured this contract despite facing stiff competition from several of the world’s largest water players.

We hope that this foray into the power industry of Vietnam will give us more opportunities to participate in the National Power Development Plan, which will result in the construction and operation of 135 power plants with a combined capacity of 48,744MW.”

Mr Tan added, “We are also delighted to have received the contract from our repeat client, TPSC for installation and commissioning services related to our ongoing project for the Tanjung Jati B Power Plant. The two contracts will contribute to our strong track record in the power industry, where we have undertaken more than 10 projects since 2007. Lilama will join our long list of clients from the power industry including Alstom, EGAT, Hitachi Zosen, JGC, Marubeni, Mitsubishi Heavy Industries, PLN, PowerSeraya, Samsung C&T, Senoko Power and Toshiba.”

The above contracts are not expected to have a material impact on the profitability, earnings per share and net asset value per share of Boustead in the current financial year ending 31 March 2010.

None of the Directors or controlling shareholders of the Company has any interest, direct or indirect, in the above contract.

By Order of the Board
Alvin Kok
Company Secretary

[Musicwhiz]

Thanks, was kind of busy so I didn't post it up.

Anyway, I usually wait for the Business Times article to be out the next day before I post it.