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In this last section Part 3, I will present Boustead’s FY 2009 audiocast and also briefly discuss their future plans and prospects. Suffice to say that for this year’s audiocast, there were much less questions posed and less was discussed if compared to FY 2008. One reason could be that there was much less clarity with respect to the future as the global financial crisis tore through the world, rendering the immediate future bleak and downcast. Another reason could be the significant slowdown in orderbook and order flow which was already evident in the late part of FY 2009, and which was expected to carry on into FY 2010. Except for the contracts already clinched by Boustead in FY 2008 and FY 2009, it is not expected that many more deals will come their way. This is something to be expected as the Company cannot be immune to the economic downturn.
Note that after the text of the transcript, I shall be discussing the prospects and plans for Boustead, so please be patient and go through all the questions herein.
Boustead FY 2009 Audiocast Transcript
Question: Please give more details on “Allowance for Forseeable Losses” of S$5.77 million (Note 2). Would we be seeing more of this in future ?
FF Wong: This refers to provisions for principally 3 projects. One is the litigation in Manila (MWSS – Municipal Water Project) – this is going through arbitration and we have not lost any money as yet and forsee a reasonable chance of success. For Olam, this is a provision where we will have difficulties recovering. The third is for Libya. This is a new project and we have not commenced work as yet, however there have been overheads incurred and in order to be prudent we have made provisions for this.
Question: Regarding your order backlog, you have an order backlog of about S$580 million. Given the current situation, what kind of visibility do you have regarding the recognition of this order book in the upcoming FY 2010 ? Read more...
Further Reading
Boustead – FY 2009 Financial Analysis and Review Part 1
Boustead – FY 2009 Financial Analysis and Review Part 2[caption id="attachment_1447" align="alignright" width="150" caption="Photo by rednuht"][/caption]
In this last section Part 3, I will present Boustead’s FY 2009 audiocast and also briefly discuss their future plans and prospects. Suffice to say that for this year’s audiocast, there were much less questions posed and less was discussed if compared to FY 2008. One reason could be that there was much less clarity with respect to the future as the global financial crisis tore through the world, rendering the immediate future bleak and downcast. Another reason could be the significant slowdown in orderbook and order flow which was already evident in the late part of FY 2009, and which was expected to carry on into FY 2010. Except for the contracts already clinched by Boustead in FY 2008 and FY 2009, it is not expected that many more deals will come their way. This is something to be expected as the Company cannot be immune to the economic downturn.
Note that after the text of the transcript, I shall be discussing the prospects and plans for Boustead, so please be patient and go through all the questions herein.
Boustead FY 2009 Audiocast Transcript
Question: Please give more details on “Allowance for Forseeable Losses” of S$5.77 million (Note 2). Would we be seeing more of this in future ?
FF Wong: This refers to provisions for principally 3 projects. One is the litigation in Manila (MWSS – Municipal Water Project) – this is going through arbitration and we have not lost any money as yet and forsee a reasonable chance of success. For Olam, this is a provision where we will have difficulties recovering. The third is for Libya. This is a new project and we have not commenced work as yet, however there have been overheads incurred and in order to be prudent we have made provisions for this.
Question: Regarding your order backlog, you have an order backlog of about S$580 million. Given the current situation, what kind of visibility do you have regarding the recognition of this order book in the upcoming FY 2010 ? Read more...
Further Reading
Boustead – FY 2009 Financial Analysis and Review Part 1
Boustead – FY 2009 Financial Analysis and Review Part 2
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In this last section Part 3, I will present Boustead’s FY 2009 audiocast and also briefly discuss their future plans and prospects. Suffice to say that for this year’s audiocast, there were much less questions posed and less was discussed if compared to FY 2008. One reason could be that there was much less clarity with respect to the future as the global financial crisis tore through the world, rendering the immediate future bleak and downcast. Another reason could be the significant slowdown in orderbook and order flow which was already evident in the late part of FY 2009, and which was expected to carry on into FY 2010. Except for the contracts already clinched by Boustead in FY 2008 and FY 2009, it is not expected that many more deals will come their way. This is something to be expected as the Company cannot be immune to the economic downturn.
Note that after the text of the transcript, I shall be discussing the prospects and plans for Boustead, so please be patient and go through all the questions herein.
Boustead FY 2009 Audiocast Transcript
Question: Please give more details on “Allowance for Forseeable Losses” of S$5.77 million (Note 2). Would we be seeing more of this in future ?
FF Wong: This refers to provisions for principally 3 projects. One is the litigation in Manila (MWSS – Municipal Water Project) – this is going through arbitration and we have not lost any money as yet and forsee a reasonable chance of success. For Olam, this is a provision where we will have difficulties recovering. The third is for Libya. This is a new project and we have not commenced work as yet, however there have been overheads incurred and in order to be prudent we have made provisions for this.
Question: Regarding your order backlog, you have an order backlog of about S$580 million. Given the current situation, what kind of visibility do you have regarding the recognition of this order book in the upcoming FY 2010 ? Read more...
Further Reading
Boustead – FY 2009 Financial Analysis and Review Part 1
Boustead – FY 2009 Financial Analysis and Review Part 2
