Hyflux Ltd – FY 2011 Annual Report

The following figures were extracted on Hyflux Ltd for the year ended 31 December 2011.

  2011 Change over 2010
Revenue $481m -15%
Profit to shareholders $53 m -40%
Earnings per share 4.3¢ -6.2¢
ROE 5.8% -11.8% points
Dividend per share 2.77¢ -1.4¢
Dividend payout 64.4% +24.8% points
  2011 2010
Net Gearing ratio (times) 0.18 times 0.8 times
Cash and Cash Equivalents $662 m $222m
Net Assets per share 60.6¢ 58.6¢
Order Book $1.9 b $1.5b

The group revenue decreased 15 per cent due to “projects in Middle East North Africa (MENA) near completion and impact of Arab Spring on new contracts and lower level of divestment activities”. Its contract worth $890 million with PUB to build and operate Singapore’s second seawater desalination plant in Tuas started construction in July 2011.

Profit attributable to shareholders decreased 40 per cent to $53 million. Consequently, earnings per share dropped 6.2 cents to 4.3 cents. Return on equity was lower at 5.8% against 17.6% in 2010.

The company proposed a total cash dividend of 2.77 cents (including interim dividend of 0.67 cents), which is 1.4 cents less than in 2010. But dividend payout for 2011 was 64.4 per cent on earnings. 2010 payout was lower at 39.6 per cent.

Hyflux financial position was healthy due mainly to issue of $400 million 6% Cumulative Non-convertible Non-voting perpetual Class A Preference Shares in the year. Net gearing ratio improved significantly from 0.8 times to 0.18 times. Cash and Cash Equivalents jumped to $662 million from $222 million.

Net asset per share increased 2 cents to 60.6 cents by end of 2011.

Share price as at today, 22 February 2012 was $1.58. Its share price had taken a beating since 31.12.2010 of $2.32. Hyflux’s share price declined in the first quarter 2011 due in part to the unrest in Libya and the termination of the desalination project in Tobruk, Libya.

From the perspective of order book, Hyflux has $1.9 billion worth of contract in the pipe line, which was higher than 2010’s $1.5 billion.

Copyright © 2012, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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