cash flow


Investors pour cash into US shale despite questions on returns

HOUSTON, Dec 15 — Financiers keep pouring cash into the shale oil sector, providing producers with a path to keep US output rising through the middle of the next decade. The United States is on track to deliver up to 80 per cent of the world’s…

Stocks in Focus (15-12-2017)

KUALA LUMPUR (Dec 14): Based on corporate announcements and news flow today, stocks in focus on Friday (Dec 15) may include: VS Industry Bhd, Eco…

Dow adds to records on Boeing dividend boost

NEW YORK, Dec 12 — The Dow rose from record peaks early today, lifted by a Boeing dividend boost and as investors prepared for a likely Federal Reserve interest rate increase. Aerospace giant Boeing surged 3.2 per cent after announcing it…

ABM says banking system exposure in O&G minimal

PETALING JAYA: The Association of Banks in Malaysia (ABM) said the oil and gas (O&G) industry’s risks to the banking system remained limited as it only accounted for about 6.5% of total exposure.

The association said in a statement today that the delinquent loans ratio for the O&G sector stood at 0.1% while impaired loans ratio increased to 5% in the third quarter of 2017, due mainly to cash flow issues observed in service providers in certain upstream segments.

“Corresponding figures for the second quarter of 2017 were 0.2% and 4.5%.”

The association was responding to an article in a business weekly entitled “ Oil and Gas Conundrum” published over the weekend, which highlighted financing issues faced by oil and gas corporations here.

Nonetheless, ABM said its members have remained supportive and will continue to provide access to financing for viable businesses including O&G sector.

“All O&G cases have been given due consideration by the banks. Credit evaluation is conducted on O&G companies similar to loan applications by any other industries.”

ABM highlighted that feasibility studies such as stress test analyses, due diligence and credit evaluation are conducted as part of the standard assessment procedure to determine the eligibility and viability.

“Common reasons for loan rejection beyond ineligibility include incomplete loan documentation and inadequate supplementary information required to support banks’ assessment of cash flows and financial buffers of companies.”

ABM said the banking industry together with Bank Negara Malaysia have been engaging with the Malaysian Petroleum Resources Corporation to better understand developments in the O&G sector and also to disseminate information on avenues for assistance available for financially distressed companies.

“Viable corporate borrowers with multiple financial creditors can approach the Corporate Debt Restructuring Committee for assistance to work out feasible and market-driven debt resolutions through mediation.”

The association added that viable small and medium enterprises (SMEs) which are facing financial difficulties, can seek assistance from the Small Debt Resolution Scheme.

“Assistance offered include restructuring or rescheduling of financing facilities and provision of financing (where appropriate) to stabilise business cashflow whilst SMEs implement business turnaround plan.”

ABM comprises of 27 commercial banks in Malaysia.

OldTown shareholders told to accept JDE offer

KUALA LUMPUR, Dec 12 — RHB advised today shareholders of white coffee cafe chain OldTown to accept the takeover offer from Jacobs Douwe Egberts Holdings Asia NL BV (JDE), saying it was decent considering the challenging business outlook moving…

Boeing lifts dividend by 20pc, sets new US$18b share buyback

SEATTLE, Dec 12 — Boeing Co said yesterday it would raise its quarterly dividend by 20 per cent and replace its existing share buyback programme with a new US$18 billion (RM73.44 billion) authorisation. The company’s shares, the…

SkyWorld sets up RM1b sukuk programme

PETALING JAYA: SkyWorld Development Group has raised RM50 million through the first tranche of its Sukuk Musharakah Islamic Medium-Term Notes (IMTN) Programme, which forms part of its RM1 billion Islamic bonds issuance.

The property developer said in a statement today, its first landmark RM1 billion financial programme has been set up comprising RM600 million Sukuk Musharakah IMTN Programme and a RM400 million Sukuk Murabahah Islamic Commercial Papers (ICP) Programme, through its special purpose financial vehicle SkyWorld Capital Bhd.

Under the financial programme, SkyWorld and its group of companies will sell their beneficial interest under the respective development projects. The future progress billings with regard to the relevant development projects will be used to fund the remaining construction costs as well as to meet the issuer’s fees, expenses and obligations under each facility.

SkyWorld founder and group managing director Datuk Ng Thien Phing said this is the first structured transaction in Malaysia involving unbilled sales and the first to involve affordable housing.

“Globally, this is also the first shariah-compliant securitisation of progress billings in the market, allowing SkyWorld to more efficiently manage project development cash flows. Despite being a relatively young and emerging developer, SkyWorld is always on the lookout for innovative funding.”

“With over 130 acres of quality land banks totalling more than RM13 billion in gross development value, we are on the right track of transforming the city and unlocking our land value.”

Lenders have billions at risk as Steinhoff crisis deepens

JOHANNESBURG, Dec 8 — US and European banks and creditors, some of whom are meeting with Steinhoff International Holdings NV on Monday, are among creditors with billions in exposure to the global retailer whose asset value has plummeted amid an…

Vivocom’s 9MFY17 results below estimates

KUCHING: Vivocom Intl Holdings Bhd’s (Vivocom) first nine months of financial year 2017 (9MFY17) results have come in below expectations, but analysts believe that financial year ended 2018 (FYE18) could be a better year for the group. As per Vivocom’s current year to date ended September 30, 2017 results, net profit amounted to RM17.23 million, […]

Oil refiners seen as biggest energy winners from US tax reform

NEW YORK, Dec 5 — Andeavor rose the most in half a year after a report from analysts at Piper Jaffray & Co that called the oil refining companies the “clear winners” from US tax reform. The San Antonio-based refiner rose 3.8 per cent to…