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Medco proposed notes rated B+
JAKARTA: International rating agency Standard & Poor's (S&P) assigned its B+ rating to Indonesian oil and gas company PT Medco Energi International with senior unsecured notes issue of around US$200 million due in 2010.
Proceeds from the new debt will be used primarily to fund Medco's acquisition of petroleum assets in 2003 and its intensive exploration.
In a press release, S&P said Medco's $200 million debt is within S&P's expectation of Medco's capital structure, whereby total debt to capital could rise to 50-60 percent (from 16 percent in December, 2002) in the near-to-medium term, depending on the implementation of planned activities and acquisition.
S&P also said the rating reflected the company's short proved reserves life index of 4.8 years, which explains the company's plans to acquire producing oil blocks in 2003, in addition to developing its gas reserves, to immediately add to its proven reserve base and production volume. -- JP
;AFP; ANPAf..r.. CorporateBrief-
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United Tractors' Q1 sales up 4%
JAKARTA: First quarter net sales of publicly-listed heavy equipment and mining company PT United Tractors increased by 4 percent to Rp 1.59 trillion (US$183 million) from Rp 1.53 trillion during the same period last year.
In its report to the Jakarta Stock Exchange on Monday, the company said the rise was attributed to the increase in the sales of its heavy equipment and coal products.
However, the company's net profit for this quarter dropped to Rp 81.3 billion compared to Rp 138.3 billion last year.
The company said the decline was caused by increasing operational costs and foreign exchange loss. -- JP
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DBS to stamp its name on HK units
SINGAPORE : DBS Group Holdings, Southeast Asia's biggest lender, will stamp its name on its Hong Kong units led by Dao Heng Bank as part of a rebranding exercise, officials said on Monday.
The name DBS Bank (Hong Kong) Ltd. will be used for its wholly-owned operations Dao Heng Bank, DBS Kwong On Bank and Overseas Trust Bank in the third quarter this year.
This follows the recent executive and legislative approval of the merger of the banking licenses of the three operations, a company statement said.
In Singapore, the original bank name The Development Bank of Singapore Ltd. will be shortened to DBS Bank Ltd., aligning its legal name with its public branding.
"DBS has been transformed, over the years, from a development financing institution in Singapore to one of the largest universal banking groups in Asia today," said DBS Group vice chairman and chief executive Jackson Tai.
"The new names support the broad range and pan-Asian scope of our operations," he added.
DBS Hong Kong chairman Frank Wong said the renaming exercise was "the perfect opportunity to unify the branding of our three banking subsidiaries in Hong Kong." --AFP
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Cathay Pacific cuts dividend
HONG KONG : Hong Kong's de facto flag carrier Cathay Pacific Airways Ltd. said on Monday it would slash in half its final dividend for last year as a result of the financial damage unleashed by the SARS outbreak and the Iraq war.
The airline said it would cut its final dividend from the originally proposed 56 Hong Kong cents (7.19 U.S. cents) a share to 28 cents.
Cathay Pacific has cut 45 percent of its weekly flight schedule last month due to a fall in passenger traffic as a result of Severe Acute Respiratory Syndrome (SARS) outbreak and war in Iraq.
However, its parent company Swire Pacific, which holds 46.19 percent of Cathay Pacific, said it had decided to leave its dividend unchanged.
"The US$432 million reduction in the dividend it will receive from Cathay Pacific will not significantly affect its financial position," Swire Pacific's group finance director Martin Cubbon said. --AFP
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Continental net profit rises 28.5%
HANOVER, Germany : Continental, the German maker of tyres and car parts, said on Monday it was raising its full-year earnings forecast after strong demand for its braking systems and electronic components pushed net profit up by 28.5 percent in the first three months of the current year.
Continental said in a statement that net profit rose by 28.5 percent to 87 million euros (US$97 million) in the first quarter.
Underling profit, as measured by earnings before interest, tax and depreciation (EBITA), was up 24.3 percent at 183 million euros on a 3.2-percent rise in sales to 3.2 percent, the statement said.
As a result of the strong first-quarter performance, Continental said it expected full-year operating profit to be above the level attained in 2002.
Previously, the group had said it expected 2003 operating profit to "at least" match the year-earlier level. --AFP