1Q2011 RESULTS BRIEFING · AP decrease due to lower procurement activities in 1Q2011 WIP increase...
Transcript of 1Q2011 RESULTS BRIEFING · AP decrease due to lower procurement activities in 1Q2011 WIP increase...
1Q2011 RESULTS BRIEFING1Q2011 RESULTS BRIEFING
5 May 20115 May 2011
This presentation may contain forward-looking statements that involve risksand uncertainties. Actual future performance, outcomes and results maydiffer materially from those expressed in forward-looking statements as aresult of a number of risks, uncertainties and assumptions.
Representative examples of these factors include (without limitation)general industry and economic conditions, interest rate trends, cost ofcapital availability, competition from other companies and venues for thesale/distribution of goods and services, shifts in customer demands,
CAUTIONARY NOTE
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sale/distribution of goods and services, shifts in customer demands,customers and partners, changes in operating expenses, includingemployee wages, benefits and training, governmental and public policychanges and the continued availability of financing in the amounts and theterms necessary to support future business.
You are cautioned not to place undue reliance on these forward lookingstatements, which are based on current view of management on futureevents.
This presentation should be read in conjunction with Rotary Engineering Limited’s 1Q2011 Financial Results
ended 31 March 2011 statement lodged on SGXNET on 5 May 2011
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lodged on SGXNET on 5 May 2011
1. Financial Highlights
2. Project Summary
3. Summary
PRESENTATION OUTLINE
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4. Question-&-Answer Session
FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS
S$’000 1Q2011 1Q2010 �
Revenue 130,468 179,741 27%
Gross Profit 23,069 32,108 27%
Gross Profit Margins (%) 18% 18% -
Other revenue 254 448 NM
Admin costs (12,002) (12,928) 7%
P&L SUMMARY
Other operating costs (3,372) (3,359) -
Finance costs (255) (7) NM
Share of associates results (110) (343) NM
Profit Before Tax (PBT) 7,584 15,919 52%
Profit After Tax (PAT) 7,828 12,402 37%
Non-controlling Interests (2,517) 1,401 NM
Profit attributable to parent (PATMI) 5,311 13,803 62%
EPS (Cents) 0.9 2.4 62%6
REVENUE BY GEOGRAPHICAL SEGMENTS
Saudi
Singapore24%
1Q2011: S$130.5m
Singapore38%
1Q2010: S$179.7m
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Saudi67%
ASEAN, UAE &
OTHERS9%
Saudi60%
ASEAN & OTHERS
2%
ORDER BOOK BY GEOGRAPHICAL SEGMENTS
ASEAN1%
Singapore10%
Saudi
@ 31 Mar 2011: S$823.9mSingapore
17%
ASEAN4%
@ 31 Mar 2010: S$1.1b
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UAE39%
Arabia50% Saudi
Arabia79%
4%
� Expect continued pressure on margin � Maintain GP guidance: 15% ~ 20% for FY2011
GROSS PROFIT MARGIN
S$’000 1Q2011 1Q2010 �
Gross Profit 23,069 32,108 27%
Gross Profit Margins (%) 18% 18% -
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3 34
43
12%11%
13%
15
20
12%
15%Admin Costs Other Operating Costs Total Costs as % of revenue
ADMIN & OTHER OPERATING COSTS
S$’m
Stable & inline with revenue growth
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13 14 14 13 12
3 439%
8%
0
5
10
15
1Q2010 2Q2010 3Q2010 4Q2010 1Q20110%
3%
6%
9%
� PMET strengthened in Singapore and Saudi Arabia
� Costs in line with business activities and performance
ADMINISTRATIVE COSTS
S$’000 1Q2011 1Q2010 �
Admin costs (12,002) (12,928) 7%
Forex loss (219) (356) NM
Admin costs (Less Forex) (11,784) (12,572) 6%
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� Costs in line with business activities and performance
� Maintenance
� IT support
� Business development and tender
OTHER OPERATING COSTS
S$’000 1Q2011 1Q2010 �
Other operating costs (3,372) (3,359) -
• (Allowance)/Write-back for doubtful debts
(93) 261 NM
• Impairment loss on advances to associates
- (603) NM
• Allowance for obsolete inventories (14) (8) NM
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• Other operating costs (excl allowances) ~ mainly depreciation in Singapore & Saudi Arabia
• Allowance for obsolete inventories (14) (8) NM
Other operating costs(excl allowances)
(3,265) (3,009) �9%
S$’000 31.03.2011 31.12.2010
Property, Plant & Equipment 76,412 77,066
Other Non Current Assets 24,582 24,036
Current Assets 643,199 638,427
TOTAL ASSETS 744,193 739,529
Current Liabilities (423,290) (427,812)
BALANCE SHEET SUMMARY
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Current Liabilities (423,290) (427,812)
NET CURRENT ASSETS 219,909 210,615
Non-Current Liabilities (14,460) (11,884)
NET ASSETS 306,443 299,833
Share Capital & Reserves 287,565 283,123
Net Asset Value (Per share) 50.6cts 49.9cts
� Property Plant & Equipment � Normal replacement of assets� Depreciation: S$3.1m
� Current Assets� WIP increase due to contract revenue not yet recognised
BALANCE SHEET ANALYSIS
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� WIP increase due to contract revenue not yet recognised� AR ~ Timing difference between revenue and invoicing
� Current Liabilities� AP decrease due to lower procurement activities in 1Q2011� WIP increase due to accrued project costs
� Non Current Liabilities� Further approved financing from SIDF
CASH FLOW SUMMARY
S$’000 1Q2011 1Q2010
Net cashflows (used in)/from Operations (29,469) 9,654
Net cashflows (used in) Investment (1,912) (3,671)
Net cashflows from/(used in) Financing 13,041 (5,458)
Net (decrease)/increase in cash and cash (18,340) 525Net (decrease)/increase in cash and cash equivalents
(18,340) 525
Cash & Cash Equivalents
Effect on exchange rate changes (598) 164
At beginning of period 134,538 132,225
At end of period 115,600 132,914
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� Net cash used in operations � Project claims per contract T&Cs� Invoicing procedures
� Net cash used in investment
CASH FLOW ANALYSIS
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� Net cash used in investment � Replacement of assets (PPE)
� Net cash from financing � Working capital in Saudi Arabia
133123
137
116
151
100
150
Cash & equivalent Project Working CapitalS$’m
STRONG CASH POSITION
17
414
2438
51
0
50
100
1Q2010 2Q2010 3Q2010 4Q2010 1Q2011
PROJECT SUMMARYPROJECT SUMMARY
Client/Project Location ContractValue
StartDate
ExpectedCompletion Date
Shell - Maintenance Various - 4Q2009 Ongoing
Hyundai - Jurong Rock Cavern (Engineering)
JurongIsland
S$2m 3Q2009 1H2011
Petrochemical process ASEAN S$130m 2H2009 3Q2011
PROJECT SUMMARY
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Petrochemical process plant
ASEAN S$130m 2H2009 3Q2011
Saudi Aramco Total Refining & Petrochemical Company (SATORP) refinery tank farm
Saudi Arabia-
Jubail City
US$745m 3Q2009 4Q2012
PTT Tank Terminal Co -ammonia storage tank
Thailand-Rayong
S$48m 3Q2009 2Q2011
Client/Project Location ContractValue
StartDate
ExpectedCompletion Date
Concord Energy-Fujairah Oil Terminal
UAE-Fujairah
US$250m 1Q2011 1H2013
Stepan Asia-Chemical plant
JurongIsland
S$15m 1Q2011 1Q2012
Lanxess – Butyl Rubber Jurong S$3m 1Q2011 3Q2011
PROJECT SUMMARY
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Lanxess – Butyl Rubber plant
JurongIsland
S$3m 1Q2011 3Q2011
SUMMARYSUMMARY
SUMMARY
� 1Q2011� Revenue: S$130m� PATMI S$5m � Cash: S$116m � Order book: S$0.8b(@31 Mar 2011)
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� SATORP Update @31 March 2011� Engineering phase: 97% � Procurement : 73% � Construction: 39% � Manpower on ground: > 5800 � Progress on track
SUMMARY- BUSINESS DEVELOPMENT
� Singapore� Focus on Jurong Island’s downstream projects� In discussions with fine chemical plant producers
setting up facilities here
� ASEAN
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� ASEAN � Direct negotiations continuing. Key markets of
Malaysia, Indonesia, Thailand and Vietnam.� Pursuing both greenfield and expansion projects� Exploring BOO / BOT opportunities
� Middle East� Business development ~ Saudi Arabia, UAE� Bidding for projects ~ Saudi Arabia� Continuing direct negotiations� Exploring BOO / BOT opportunities
SUMMARY- BUSINESS DEVELOPMENT (Cont.)
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� Europe� Prequalified and submitted bid� Anticipate demand for storage and distribution
terminals in Europe, including Turkey
QUESTION-&-ANSWERQUESTION-&-ANSWER
THANK YOUTHANK YOU