JP/14/cap
JP/14/cap
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
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JP/14/cap
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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JP/14/cap
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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JP/14/cap
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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JP/14/cap
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