Stocks to watch: CCT, M1, O&M players

CapitaLand Commercial Trust (CCT)

CCT on Wednesday posted a distribution per unit (DPU) of 2.3 Singapore cents for the financial quarter ended Sept 30 (Q3 2016). This marks a year-on-year DPU growth of 7.5 per cent from last year's 2.14 cents.

Gross revenue for Q3 grew 8.9 per cent to S$74.4 million and net property income grew 8.3 per cent to S$57 million. CCT said that the increase was due to CapitaGreen's 100 per cent contribution since the completion on Aug 31 of CCT's acquisition of a 60 per cent stake in MSO Trust, which owns CapitaGreen, a Grade A office building.

Separately, CCT said that it will redevelop Golden Shoe Car Park into a higher-value commercial development which will include an office tower.

The redevelopment could potentially create commercial gross floor area of approximately one million sq ft and comprise an office tower of up to 280 m above ground. A new food centre owned by the government is expected to replace the existing food centre and adjoin the new office tower.

M1

A decline in telecoms revenue, among other factors, contributed to a 23.4 per cent fall in M1's net profit for the third quarter ended Sept 30, 2016, the telco operator announced on Tuesday.

The company's earnings for Q3 fell to S$34.4 million, from S$44.9 million in the year-ago period. This came on the back of a 10.3 per cent drop in revenue to S$249.1 million, from S$277.6 million.

The company said that traditional telecommunications services, such as international calls and roaming, continued to be impacted by OTT (over-the-top) services and there was a slowdown in excess data usage revenue in the latest quarter.

Offshore and marine (O&M) players

Ezra Holdings and Swissco Holdings on Tuesday called for noteholders' meetings in late October, just one day apart from each other, to seek waivers on covenants or restructure notes maturing in 2018.

Market watchers said that O&M companies may have learnt to act sooner rather than later after the Swiber fallout to seek noteholders' support for debt restructuring.

Before trading started on Tuesday, Ezra called for a noteholders' meeting to seek waivers on covenants tied to the trust deed of its S$150 million notes maturing in April 2018.

Separately, in a regulatory disclosure issued after the close of trading on Tuesday, Swissco called for its second informal noteholders' meeting on Oct 24 at 4pm for the proposed restructuring of S$100 million worth of notes maturing in April 2018.