Corporate digest

Singapore Exchange

SINGAPORE Exchange (SGX) has appointed a new chairman, Kwa Chong Seng, who will in turn step down from Olam International's board to devote time to the new responsibilities.

Mr Kwa will succeed outgoing SGX chairman Chew Choon Seng, who has been at the helm of the exchange since January 2011. Mr Chew said Mr Kwa's capabilities, experience and accomplishments in industry, business and public service are well known and highly regard. "SGX will definitely be well steered," he said.

Separately, Olam said it has accepted Mr Kwa's resignation with effect from Dec 31 this year and started the process of identifying a new chairman.

"With my appointment as chairman of SGX effective September 22, 2016, stepping down from the Olam board will allow me more time to devote to my new responsibilities at SGX," said Mr Kwa.

"I would however stay on Olam's board as chairman and independent director until a new chairman is appointed to ensure a seamless handover and oversee an effective transition over the course of the next few months."

The independent non-executive chairman first joined Olam's board in Oct 2014 as deputy chairman. He was appointed chairman in October last year. Mr Kwa was also previously chairman and managing director of ExxonMobil Asia Pacific from December 1999 to October 2011. He holds 20,000 shares in SGX.

AusGroup

HIGHER cost of sales and a host of impairment charges have pushed Australian oil and gas engineering services provider AusGroup into the red for the fourth quarter. Results for Q4 were also significantly impacted by the continued delay in the commercialisation of its port and marine business.

The Singapore-listed firm chalked up a net loss of A$99.5 million (S$102.5 million) for the fourth quarter ended June 30, compared to a net profit of A$266,000 in the same period a year ago, it said in a Singapore Exchange (SGX) filing on Monday evening. This translates to a loss per share of 13.5 Australian cents. No dividend has been declared.

The plunge in earnings is despite a 14.1 per cent rise in revenue to A$103.4 million, which was on the back of higher access and project services provided, relative to the comparative period a year ago, AusGroup said.

A week ago, the firm had said it has decided to cease its Singapore fabrication and manufacturing businesses, as reductions in capital expenditure in the upstream oil and gas industry exerted pressure on those businesses. This resulted in an impairment of A$1.5 million being booked in the quarter, AusGroup said. In addition, an impairment charge of A$72.3 million for its port and marine business was also logged in the quarter, AusGroup added, following an impairment assessment.

PEC

PEC's fourth-quarter net profit was S$8.2 million - a reversal from a net loss of S$7.8 million in the previous year. This was thanks to "an increase in variation orders from completed projects", said the specialist engineering group on Monday.

But for the three months ended June 30, revenue dropped 10 per cent to S$142.7 million from the previous year. Q4 earnings per share came in at 3.2 Singapore cents, a reversal from a loss per share of 3.1 Singapore cents in the previous year. Net asset value per share edged up to 86.7 Singapore cents as at June 30, from 80.4 Singapore cents in a year ago.

Ordinary dividend per share climbed to two Singapore cents from one Singapore cent in the previous year. There was also a special dividend of one Singapore cent declared for FY2016. PEC shares closed 0.01 Singapore cents higher at 43.5 Singapore cents on Monday.

Healthway Medical Corp

CLINIC operator Healthway Medical Corporation on Monday agreed to issue up to 133.3 million new ordinary shares at three Singapore cents each, to raise net proceeds of about S$3.75 million. The money will be split 45 per cent towards working capital and 55 per cent towards the group's Singapore expansion plan.

The placement shares are priced at a premium of approximately 10.7 per cent to the weighted average price of S$0.0271 for trades done on Monday. KGI Fraser Securities is the placement agent, and the shares will be placed to institutional investors.