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Stocks to watch: Ezra, Swiber, OUE, CapitaLand, Mapletree Commercial Trust, Frasers Commercial Trust
THE overnight rally on Wall Street may fuel trading activities here on Thursday trading, with trading cues coming from companies releasing their quarterly earnings results and some capital-raising updates.
But it remains to be seen if sentiment hanging over the oil and gas sector will continue to rear its ugly head.
In response to articles saying that Ezra Holdings was looking for fresh capital, the offshore marine company clarified on Wednesday night that it reviews options to preserve value for both the company and its shareholders an ongoing basis and to strengthen its financial position. In relation to this, it holds discussions with parties regarding possible transactions, which may include potential fund raising via new loans, issue of new securities, sale of non-core assets, or refinancing of existing loans.
But no definitive agreements in relation to any transactions have been entered into by the company or its subsidiaries, and there can be no assurance or reasonable certainty that any discussions or prospects will be successfully concluded, Ezra said.
Oil services firm Swiber Holdings, which now faces claims amounting to a hefty US$50.5 million, has appointed KPMG as interim judicial manager. The High Court on Tuesday granted an order putting the company and its subsidiary Swiber Offshore Construction Pte Ltd into interim judicial management.
Meanwhile, some major developers have released their financial results.
CapitaLand Limited posted a 36.6 per cent fall in net profit after tax and minority interests (PATMI) for the second quarter ended June 30 from a year ago to S$294 million, dragged by higher cost of sales and lower fair value gains of investment properties.
Property developer OUE Limited swung back to profitability in the second quarter ended June 30 with a net profit of S$25.7 million, after marking a net loss of S$16.3 million a year ago. The turnaround came on the back of a 40.4 per cent jump in revenue to S$134.3 million, bolstered by strong contributions from both property investments and development.
News relating to capital raising also emanated from the real estate investment trust (Reit) sector.
Mapletree Commercial Trust (MCT) is placing out 364.88 million new units on Thursday at S$1.45 apiece, pricing the private placement at the top end of its indicative range.
Frasers Commercial Trust (FCOT) said on Wednesday night that it has priced its maiden issuance of S$100 million five-year senior unsecured notes under its S$1 billion multicurrency medium term note programme at a fixed interest rate of 2.835 per cent per annum. The notes, due in 2021, were placed with both institutional and private investors.