Shares of offshore vessel builder STX OSV Holdings Ltd
dropped as much as 8.3 percent to a five-month low after it
posted weaker-than-expected quarterly earnings.
By 0203 GMT, STX shares were down 7.3 percent at S$1.39, but
have risen 19.8 percent since the start of the year, compared to
the FTSE ST Oil & Gas Index's 14.4 percent rise.
STX said its third-quarter net profit dropped 39 percent to
228 million Norwegian crowns ($39.6 million), hurt by a fall in
OCBC Investment Research cut its target price for STX to
S$1.69 from S$2.00 but kept its 'buy' rating. It said STX's poor
performance was mainly due to slower pace of revenue recognition
during the end of the shipbuilding phase.
The brokerage noted that STX's order intake slowed down with
only two new vessel contracts secured in the third quarter,
insufficient to replenish its orderbook.
"The group reported generally stable operations, but the
slowdown in new orders may lead to under-utilization in the
Norwegian yards in 2013," OCBC said.
1006 (0206 GMT)
(Reporting by Charmian Kok in Singapore; Editing by Anand Basu;
10:05 STOCKS NEWS SINGAPORE-Olam shares jump 4.8 pct after
Shares of commodity trader Olam International Ltd
jumped as much as 4.8 percent, recovering from Wednesday's
losses, after it reported a 26 percent rise in its quarterly
By 0133 GMT, Olam shares were up 4 percent at S$1.83, after
falling 4.4 percent on Wednesday. Olam has lost 14 percent since
the start of the year, compared to the Straits Times Index's
11.6 percent rise.
Olam shares had fallen 7.9 percent since its competitor
Noble reported disappointing third-quarter earnings earlier this
month, fuelling concerns about a tough business environment for
"Olam's results were pretty good, lifting concerns about the
company after Noble posted poor results," said a local trader.
Olam said its first-quarter net profit rose 26 percent to
S$43.2 million from a year earlier, which Citigroup said was
boosted by strong volume growth in its food staples or packaged
food segment. The brokerage tipped 2013 to be a year of recovery
for the company.
However, CIMB Research downgraded Olam to 'neutral' from
'outperform' and cut its target price to S$2.08 from S$2.61,
citing potentially weak margins, negative cash flows and higher
CIMB cut its 2013-2015 earnings per share estimates for Olam
to reflect margin pressure from new acquisitions.
The brokerage was surprised at Olam's aggressive S$1.7
billion capital expenditure budget for 2013 and the first half
of 2014, which it said would result in negative free cash flow
over the next two years.
0933 (0133 GMT)