Saturday, August 5, 2017

Federal's 2Q2017 earnings are10.1 percent up


Federal just released its 2Q2017 quarterly result: As of 24 July 2017, the Group’s committed order book was S$42.0 million, including the procurement contract for the Zawtika Development Project Phase 1C.  Basic 2Q2017 EPS is 0.87 cents, an increase of 10.1% over the same quarter in 2016.

I think the recent sell-off of Federal shares was overdone and the good result should bring back the confidence of its shareholders to buy more or hold their shares while waiting for more good news to come with the many initiatives launched by its management.
           
I agree with what Executive Chairman and CEO, Mr Koh Kian Kiong, of Federal has shared on the company’s positive set of financial results and its business outlook: Even though the offshore marine and oil and gas sectors continue to face difficulties, our Group is heartened to maintain our profitability in face of such a tough operating environment. Our management will continue to employ a prudent approach in growing our order books by setting up strategic partnerships with strong partners to co-bid for more valuable projects in the region especially in Indonesia. We are very delighted to sign-up partners that have excellent track record in the business like CMIH, COOEC and PT Timas etc. Our Group is hopeful that these strategic partnerships will soon bear fruits for all parties involved and enhance shareholder value moving forward.

I know Federal will have a solid quarterly result in its 4th quarter if history is anything to go by and I believe Mr Koh will start its accumulation of Federal's shares again as the barring period for him to buy has been lifted with the release of the quarterly results. 

Superphang

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