May 8: StarHub, Ezion, UOL

Singapore shares closed lower on Wednesday, following Wall Street losses and in line with a regional sell-off. The benchmark ST Index drops 9.13 points, or 0.28%, at 3,236.43 on turnover of $1.01 billion. Here are some stocks that could move the market this Thursday morning:

StarHub reported a 7.7% fall in earnings for the first quarter ended Marc to $84.2 million, down from $91.2 million a year ago.

Ezion Holdings said its earnings for the first quarter ended March 31 fell 2% to US$45.21 million, despite a 72.3% rise in revenue.

UOL Group posted a 69% rise in group earnings to $120.8 milllion for the first quarter ended March from a year ago. This was due mainly to the sale of land at Jalan Conlay, Kuala Lumpur.

Ezion posts 2% fall in 1Q earnings to $56.5 mil

Ezion Holdings, the liftboat operator as well as offshore logistics support service provider, reported a 2% fall in earnings to US$45.2 million in 1Q2014 ended March, despite a 72.3% rise in revenue.

The decrease in earnings was due to the one-off gain from disposal of a jointly controlled entity recognised a year ago in 1Q2013. Excluding the gain from the disposal, earnings for the reporting quarter would have increased 62% as gross profits rose 92.2% to US$47.3 million over the same period.

Revenue rose 72.3% to US$94.4 million mainly due to the chartering contribution from the deployment of an additional units of the group’s service rigs.

The group also acquired the remaining share capital of a jointly controlled entity in 1st quarter 2014 which subsequently became a fully owned subsidiary of the group. The consolidation of the results of that jointly controlled entity under the group resulted in a 19% decrease in the share of results of joint ventures from a year ago.

The group’s total equity increased by US$77.3 million to US$877.6 million due to the profits derived in the 1st quarter of 2014 and issuance of new ordinary shares and redeemable exchangeable preference shares.

Quek Leng Chan's Hong Leong unit subscribes to $194 mil of Ezion shares

Ezion Holdings, the Singapore liftboat developer and operator, announced that Asia Fountain Investment Company, an indirect wholly-owned subsidiary of Guoco Group and GuoLine Capital, an indirect wholly owned subsidiary of Hong Leong Company (Malaysia) Berhad, has subscribed to 100 million new shares of the company for US$155 million ($194 million).

Chew Thiam Keng, Group CEO of Ezion, says: “We are most happy to have the privilege of working with Tan Sri Quek Leng Chan, an esteemed and most well regarded global investor. On behalf of the Board and management of Ezion, I warmly welcome his investment. This investment will allow Ezion to leverage on our new shareholders’ extensive network of resources and vast experience, in particular in Asia, and to further expand our business in the vibrant offshore Oil and Gas industry. We also believe that the proceeds received from this investment will allow us to better position ourselves to meet the strong demand of clients for our product and services, balance our capital structure and allow us to keep up with the growth without having to raise further equity for at least the next 12 months based on current business prospects."

Credit Suisse acted as sole arranger for the proposed subscription.

Ezion Holdings sells shares worth $194 mil to Hong Leong units

Singapore-listed Ezion Holdings, which supplies support vessels for offshore oil fields, said it plans to sell shares to two firms in Malaysia’s Hong Leong Group, raising US$155 million ($194 million) to help expand its fleet.

The capital raising follows news this month of an up to US$380 million planned IPO in Singapore by PACC Offshore Services Holdings (POSH), an operator of maritime support vessels controlled by Malaysia’s richest man Robert Kuok.

Ezion issued 100 new million shares at US$1.94 per share, an 8.9% discount to Tuesday’s closing price.

Asia Fountain Investment Company Limited and GuoLine Capital Limited, both subsidiaries of Hong Leong Company (Malaysia) Berhad, each subscribed to 50 million shares. Hong Leong Company (Malaysia) Berhad is the holding company of Hong Leong Financial Group.

Each unit will hold approximately 3.8% of the enlarged share capital of the company.

Ezion plans to use 70-90% of the net proceeds on the acquisition of offshore and marine assets, and the rest on general working capital. The company’s net non-current assets rose 84% in 2013, after nearly tripling in the previous year.

Ezion shares were flat at $2.13 after the announcement.