Rotary Engineering

[guru]

Any views on Q3 results?

[CityFarmer]

For those vested and interested...

(not vested)

Rotary Engineering wins projects worth $200 mil

Rotary Engineering said it has won contracts in Singapore and Saudi Arabia valued at a total of $200 million.

Rotary said one of the contracts won is an engineering, procurement and construction (EPC) contract by a joint venture between three multinational oil companies to build a shared lubricant storage facility in Tuas South, Singapore.

http://www.theedgesingapore.com/the-dail...0-mil.html

[Temperament]

Rotary Engineering:
Believe it or not some lots are vested since IPO. Some not long ago.
Only be very careful of KOH Bs. K. Bs keep on spinning new companies (FE i think) and meanwhile at times keep on shares buying back with pittance div. payment to shareholders
Have some since IPO. So far only the KOH & Families benefitted. IMO.

[morten]

Rotary Engineering:
Believe it or not some lots are vested since IPO. Some not long ago.
Only be very careful of KOH Bs. K. Bs keep on spinning new companies (FE i think) and meanwhile at times keep on shares buying back with pittance div. payment to shareholders
Have some since IPO. So far only the KOH & Families benefitted. IMO.

So many abbreviations? Who is KOH? Bs? FE?

[Temperament]

Ha! Ha!
Sorry, how many company in SGX started with KOH. "FE"= Financial Engineering. It is happening all the times. IMO.

[mkmk]

From UOBKH Research Report (10th Oct 13)

We hosted Rotary Engineering at UOB Kay Hian Asian Conference recently. This report highlights the key takeaways.

Valuations
Maintain BUY and target price of S$0.88, based on a 3-year average PE of 10.6x on 2014F EPS of 8.3 cents.

Investment highlights
Chairman and MD Mr Chia remained confident on outlook. According to Mr Chia, there is still a strong pipeline of O&G projects in the region and UAE. Only recently, Petronas has called for a tender under Package 8 of the Refinery and Petrochemicals Integrated Development (RAPID) project in Johor, Malaysia. Rotary will be bidding for the project with four other contenders. Mr Chia estimates Rotary’s scope of work for the project is in the tune of US$700m-$1b.

Myanmar as the new frontier. Rotary will also be exploring projects in Myanmar. Currently, there are plans to develop more than 20 plots of land for the construction of terminals and tanker berths around the Thilawa Port. Rotary will be keen to participate in these EPC projects.

We expect share price to be driven by improving earnings. Going forward, based on the contract wins to-date and the S$1b orderbook, we expect net profit to recover to S$21.5m and S$47.2m in 2013 and 2014 respectively. This will be a turnaround from the loss of S$80.4m in 2012, mainly due to the cost overrun in the SATORP project.

Formidable cash balance to support consistent dividend payout.Rotary had S$164.5m cash as at 30 Jun 13 and the company has been paying dividends even when it reported a loss in 2012. As earnings improve with more contracts clinched, we believe the company can resume paying higher dividends. We estimate dividend yields of 2.3% and 5.0% in 2013 and 2014 respectively.

Not Vested

[yogi]

As chairman reiterated in last few quarter earnings and in AR2013, its facing intense competition. Though it has $1B orderbook, it might not be at lower margins than what they commanded in 2010 when they also had just closer to $1B orderbook.

Company is working on to get into LNG sector. Singapore's pursuits to be LNG hub in the region would bode well for Rotary in mid to long terms.

My personal view. Vested.

[greengiraffe]

http://www.businesstimes.com.sg/premium/...m-20140903

PUBLISHED SEPTEMBER 03, 2014
Rotary Engg wins deals worth S$80m
These include its first LNG contract, signed with IHI Corp
BYMICHELLE QUAH
michquah@sph.com.sg @MichelleQuahBT

MAINBOARD-listed Rotary Engineering said on Tuesday it had won several contracts worth a total value of about S$80 million, including one that gave it a foothold in the LNG (liquefied natural gas) space for the first time.
Rotary - an engineering, procurement, construction and maintenance services company supporting the oil and gas and petrochemical industry - said it won its first LNG contract through a deal with Japan's IHI Corporation, formerly known as Ishikawajima-Harima Heavy Industries Co, Ltd.
The contract will see Rotary providing tankage works for two X 160,000m3 LNG storage tanks for the LNG Receiving Terminal Expansion Project - Phase II at Map Tha Phut petrolchemical hub in Rayong, Thailand.
"Rotary has invested time and resources to prepare for this market and finally it has come to fruition," said the group's chairman and managing director Roger Chia Kim Piow. "We are now well positioned to participate in the other LNG projects in Singapore, Asia and the Middle East."

[Louhan]

Rotary is quite generous to give out dividend of 2.5 cents (as compared with other O&G companies). At current price of 54 cents, the yield is 4.6%. Not too bad.

http://www.businesstimes.com.sg/premium/...m-20140903

PUBLISHED SEPTEMBER 03, 2014
Rotary Engg wins deals worth S$80m
These include its first LNG contract, signed with IHI Corp
BYMICHELLE QUAH
michquah@sph.com.sg @MichelleQuahBT

MAINBOARD-listed Rotary Engineering said on Tuesday it had won several contracts worth a total value of about S$80 million, including one that gave it a foothold in the LNG (liquefied natural gas) space for the first time.
Rotary - an engineering, procurement, construction and maintenance services company supporting the oil and gas and petrochemical industry - said it won its first LNG contract through a deal with Japan's IHI Corporation, formerly known as Ishikawajima-Harima Heavy Industries Co, Ltd.
The contract will see Rotary providing tankage works for two X 160,000m3 LNG storage tanks for the LNG Receiving Terminal Expansion Project - Phase II at Map Tha Phut petrolchemical hub in Rayong, Thailand.
"Rotary has invested time and resources to prepare for this market and finally it has come to fruition," said the group's chairman and managing director Roger Chia Kim Piow. "We are now well positioned to participate in the other LNG projects in Singapore, Asia and the Middle East."

[greengiraffe]

Rotary is supposed to benefit from storage in view of low feed prices but even then outlook is bleak... another perspective of the current O&G tsunami...

http://infopub.sgx.com/FileOpen/2Q2015_4...eID=363427

The Group remains focussed on the execution of its current projects. The Group is constantly
innovating work processes so as to improve productivity and manage rising costs.
The steep oil price correction in recent history has caused concerns in the global economy and
particularly those in the oil and gas industry. Protracted weakness in oil prices may affect the
Group’s business as competition for projects becomes keener. Coupled with a tight foreign labour
market in Singapore, the Group would also face pressure on its margins and profitability.
In view of the current uncertainty of the macro business environment, the Group has placed
greater focus in managing its costs and accordingly, other operating and administrative costs has
been trimmed in line with revenue. The Group has taken the opportunity to consolidate its position
and look out for investment in businesses that complement its existing activities.
The Group continues to actively seek business opportunities through direct negotiations and
bidding for projects in ASEAN and Gulf Cooperation Council countries. At the date of this
announcement, the Group’s order book stands at S$162 million.