Singapore Corporate News - 31 Aug 2007

RH Energy wins contract worth US$7.7m in China

RECENTLY listed RH Energy yesterday announced that it has clinched a US$7.7 million deal to provide a directional flow control valve system to Sinopec Group.

RH Energy, which provides equipment integration services to the oil and gas sectors, will supply the system to Sinopec's Puguang gas field in China's Sichuan province. The project is scheduled to be completed by end-July next year.The new contract brings the group's outstanding order book to US$29.1 million. RH Energy, which made its debut on the mainboard of the Singapore Exchange last month, also has another Puguang gas field project in its bag. As revealed in its listing prospectus, it has won a US$13.5 million contract to provide emergency shutdown system for a 1,674-km-long pipeline that will transport natural gas from the Puguang Gas Field to the Changjiang Delta District, including Shanghai and the provinces of Jiangsu and Zhejiang.

'The awards are yet another validation of our track record as a reliable and quality equipment integration service provider in the oil and gas industry in China,' said executive chairman and founder Wang Hairong. 'Puguang gas field is currently the largest marine-origin gas field in the country and we are very privileged to work with our customer, Sinopec, on this project.'
RH Energy said the Puguang gas field holds verified reserves amounting to 356 billion cubic metres, as of 2006. Sinopec's total investment in the gas field is estimated to be 65.7 billion yuan (S$13.3 billion) - including a 'Sichuan to East Gas Pipeline Project' to construct a 1,674 km-long pipeline 'with a designed annual transport capacity of 12 billion cubic metres of natural gas for Sichuan, Hubei, Anhui, Jiangsu and Zhejiang provinces, and Chongqing and Shanghai municipalities'.

RH Energy posted half-year net profits of US$350,000 this year, down from US$462,000 last year. This was despite its revenue jumping 56.9 per cent to US$5.5 million. The group said it was dragged down by lower gross profit margin resulting from intense competition. For the six months ended June, it also suffered a delay in the delivery of certain projects.

Banyan Tree enters Turkey market

LUXURY resort operator Banyan Tree Holdings has signed a new management contract in Turkey.

The win marks Banyan Tree's first foray into Turkey, where the group will manage a boutique resort and residential development located in the northern coast of the Bodrum peninsula.

The resort will also include a 4,000 sq m spa facility featuring Banyan Tree's award winning spa treatments.

Earlier this year, Banyan Tree signed contracts to manage three hotels in China. These hotels are expected to begin operations in 2008 and 2009.

Oculus eyes firm, SGX 'new board'

OCULUS says it is in preliminary talks to acquire an environmental resources development firm. The contact lens maker is also eyeing a transfer of its Sesdaq listing to a new sponsor-surpervised board that the Singapore Exchange has proposed as part of plans to transform the second board.

Oculus, which is in the midst of turning itself into an energy play, said the acquisition will allow the group to leverage on the growing global needs to address environmental concerns.

The company has appointed PrimePartners Corporate Finance Pte Ltd as the financial adviser for the proposed acquisition.

In June, Oculus said it was buying Hunan Zhangjiajie Chalinhe Electric Power Co, which owns a hydropower plant, for 700 million yuan (S$142 million). Following that, it also inked a few other pacts to acquire several other hydropower plants, including seven in Jiangxi and three in Fujian.
To fund those acquisitions, Oculus secured a $100 million financing facility earlier this month from a major New York-based fund manager. The facility is a convertible bond that gives the bondholder an option to convert the debt into equity. Oculus has also placed up to 48.3 million new shares in two separate tranches to raise $14.9 million.

Epure wins 19.4m yuan China contract

WATER and wastewater treatment firm Epure International has won a 19.4 million yuan (S$3.92 million) contract in China.

The deal, clinched by its subsidiary Beijing Sound Environmental Engineering Co, is to be signed within a few weeks, Epure said.

Epure will procure, fabricate and provide equipment for a municipal wastewater treatment system.

To be completed in the third quarter of next year, Epure's latest project takes its order book to 469 million yuan.

It will supply to a system that can treat 120,000 tonnes of wastewater and 80,000 tonnes of recycled water per day.

The equipment supply contract is for the first phase of the plant, or half of the total capacity.

The contract was awarded by state-owned enterprise Yingkou Yanhai Kaifa Jianshe Co.