Singapore Corporate News - 5 Sep 2007

ASL Marine: FY08 likely to reach new high

ASL Marine expects a sixth straight year of record earnings in fiscal 2008, thanks to strong shipbuilding orders and higher charter rates.

For the year ended June 30, 2007, ASL reported a 74.5 per cent surge in net profit to a record $40.25 million as group revenue jumped 61 per cent to $318.4 million, fuelled by broad-based growth across its business segments.

Shipbuilding remained the key contributor to revenue, chalking up revenue of $202.8 million - 64.4 per cent higher than the year before - as it took on higher-value and more sophisticated projects. It lifted its gross margin to 8.4 per cent from 4.3 per cent previously. ASL had a record shipbuilding order book of $622 million at June 30 this year, of which about 43 per cent is expected to be recognised in fiscal 2008.

In just two months before reporting its fiscal 2007 results in August, ASL secured another $48 million of new orders, of which it expects to book 11 per cent in fiscal 2008.

PUB prepares for 5th Newater plant, 87km of new pipelines

SINGAPORE'S fifth and largest Newater plant will be up and running in 2010, a year ahead of schedule.

The plant in Changi will produce up to 50 million gallons (23 million litres) of ultra-clean reclaimed water every day - enough to fill 94 Olympic-size pools.

This new plant, coupled with the four existing facilities in Kranji, Bedok, Seletar and Ulu Pandan, will contribute 30 per cent of Singapore's water needs by 2011, when the first of Singapore's two water agreements with Malaysia expires.

Local catchment, imported water and desalination meet the rest of Singapore's water needs.
Strong demand from industry players has also hastened the process.

Demand for reclaimed water has tripled over the past six months to more than 200 customers - mainly in the wafer fabrication and chemical industries.

Currently, 15 per cent of water here comes from reclaimed water, mostly for industrial use. About 2 per cent of Newater is blended with reservoir water for drinking.

National water agency the Public Utilities Board (PUB) yesterday called for public tenders for the fifth plant.

About 87km of new pipelines will also be laid. Some 20 tenders to expand the existing pipeline network are on offer.

This ramping up of Newater production will not only meet demand but could also bring costs down because of economies of scale.

Companies now pay $1 per cu m, down from $1.15 last year, thanks to the opening of the fourth treatment plant in Ulu Pandan earlier this year.