Daily news - 24 Sep

Cosco units secure US$256m of contracts
Cosco Corp (Singapore) – through 51 per cent-owned Cosco Shipyard Group (CSG) - has won newbuilding and conversion contracts worth US$256.2 million, its first new orders since July. The newbuilding contracts were awarded by a German customer to CSG's subsidiary, Cosco Dalian Shipyard, which will build two 80,000 dwt Kamsarmax bulk carriers for a total contract value of US$108 million. Cosco said the first 30 per cent instalment payments for the contracts have been received, and the two vessels are scheduled for delivery in 2010 and 2011 respectively. The other orders were nine conversion contracts valued at US$148.2 million, which CSG secured through subsidiaries Cosco Nantong Shipyard, Cosco Dalian Shipyard, Cosco Zhoushan Shipyard and Cosco Guangdong Shipyard. The contracts were awarded by various customers from the US, China, Hong Kong, India and Italy. They comprise one oil tanker-to-FPSO conversion from a repeat customer valued at US$60 million, one forward hull conversion worth US$21.7 million, and seven oil tanker-to-bulk carrier conversions totalling US$66.5 million. The projects are slated for progressive completion by the fourth quarter of next year.

StarHub CFO worried about credit tightening
StarHub Ltd – Singapore's second-largest phone company, said it is concerned that customers will scale back their spending on telecommunications and television services because of the fallout from the financial turmoil in the United States. 'My biggest worry is that there's suddenly credit tightening, not on StarHub, but for the corporates' and smaller businesses, chief financial officer Kwek Buck Chye said in a phone interview from Hong Kong yesterday. Consumers 'will still use our services but less'. Slowing economic growth in Singapore amid the global credit crisis may undermine demand for Star-Hub's services, Mr Kwek said. Still, StarHub is sticking to its 2008 sales growth forecast of 7 per cent, which was lowered from a 10 per cent estimate in May.

CapitaLand JV awards US$500m contract
CapitaLand - a joint venture with Abu Dhabi-based Mubadala, has awarded the main construction contract for Rihan Heights, the first phase of its US$5-6 billion flagship project Arzanah in Abu Dhabi. The contract, valued at AED 1.9 billion (about US$500 million) has been awarded to a joint venture between Malaysia's Sunway Construction and Abu Dhabi-based Silver Coast Construction & Boring Est. Capitala said the contract cost of AED 1.9 billion is within budget and is part of the estimated total development cost of Arzanah. Wong Heang Fine, acting CEO of Capitala, said: 'We have achieved a significant advantage with the completion of our enabling works ahead of schedule. Main construction works are due to commence this coming November. We are on target to complete Rihan Heights and start the gradual handover of residences to buyers in the first quarter of 2011.' Capitala was formed this year to design, build, manage and maintain integrated communities in Abu Dhabi. Mubadala has a 51 per cent stake and CapitaLand the other 49 per cent.

Source: Kim Eng