SG Morning Highlights | Seatrium Signs MOU with Shell to Strengthen Collaboration in Floating Production Systems

Singapore shares opened higher on Friday. The $FTSE Singapore Straits Time Index(.STI.SG)$ rose 0.17 percent to 3,192.98 as at 9.05 am.

$Seatrium(S51.SG)$: Singapore-based Seatrium Ltd. has signed a non-binding memorandum of understanding (MOU) with Shell Global Solutions International BV to enhance their collaboration in floating production systems by leveraging their engineering technologies. The MOU focuses on driving project standardization and replication and seeks to promote best practices in the design and construction of floating production systems. Seatrium and Shell have worked together on several projects, including the recently announced Sparta floating production unit (FPU), which is designed to be replicable. Seatrium also announced that it has secured contracts with a total value of $257.2 million to be completed by the end of 2025, including upgrades and conversions of floating storage regasification units and repairs and refurbishments of cruise ships.

$Keppel DC Reit(AJBU.SG)$: Keppel DC Reit has reported a 13.7% YoY decrease in Q1 distribution per unit (DPU) to S$0.02192, compared to S$0.02541 in the same period last year. Gross revenue, however, increased by 18.4% to S$83.4 million from S$70.4 million in Q1 FY2023, mainly due to a settlement sum received in relation to a dispute with DXC Technology Services and positive reversions and escalations, said the manager. Net property income grew 11.2% YoY to S$71 million for the quarter, while distributable income declined 16.3% YoY to S$38.8 million, impacted by higher finance costs and less favorable foreign exchange hedges.

$UOB(U11.SG)$: United Overseas Bank (UOB) announced that it would pay out 85 cents per share for 2HFY2023 or S$1.70 for the full year, with a 50% payout ratio premised on the bank's common equity tier 1 (CET1) ratio staying between 12.5% to 13.5%. In his opening speech at the bank's FY2023 AGM, group CEO Wee Ee Cheong confirmed that UOB's core net profit had risen 26% to a new record of S$6.1 billion, while CFO Lee Wai Fai elaborated on the future earnings model, which he described as a steady dividend growth model. Wee also stated that UOB aspires to be the best trade bank in ASEAN with a 5% share of the US$3.8 trillion market and would focus on connectivity within ASEAN.