Friday, May 27, 2005
MARC International has reaffirmed the rating of First Global Sukuk Inc.’s Serial Islamic Lease Sukuk Issuance of up to USD368 million at A-IS, reflecting Kumpulan Guthrie Berhad’s (as the lease paymaster) strong position as one of the country’s leading plantation players cum property developer with vast land banks in Malaysia and Indonesia; strong financial flexibility and the anticipation of improved cash flow from its operations, going forward. Moderating factors to the rating include the cyclical nature of the palm oil industry as well as developments surrounding the political and operating environment in Indonesia.
Based on FY2004 audited accounts, the Plantation division recorded improved performance following better efficiency levels and favourable CPO price, which in turn saw a 16.8% and 35.9% increase in revenue and operating profit respectively. Meanwhile, the Property division also witnessed impressive growth in revenue and operating profit, driven by increased sales and progress billings. Guthrie’s debt leverage ratio in 2004 rose to 0.74x but remains manageable considering an average gearing of 0.67x over the last five fiscal years. As at 24 December 2004, Guthrie has redeemed Tranche A’s Sukuk facility amounting to USD50 million (RM190.0 million). The USD100 million (RM380 million) Tranche B’s Sukuk facility will mature in December 2006.
The Group is currently making revisions to the earlier rationalization exercise to streamline its core operations. The implementation of the alternative scheme is targeted to be completed by the first quarter of 2006. Meanwhile, its on-going exercise involving the divestment of its non-core activities is expected to follow through in 2005 with the sale of some its manufacturing companies.
Based on FY2004 audited accounts, the Plantation division recorded improved performance following better efficiency levels and favourable CPO price, which in turn saw a 16.8% and 35.9% increase in revenue and operating profit respectively. Meanwhile, the Property division also witnessed impressive growth in revenue and operating profit, driven by increased sales and progress billings. Guthrie’s debt leverage ratio in 2004 rose to 0.74x but remains manageable considering an average gearing of 0.67x over the last five fiscal years. As at 24 December 2004, Guthrie has redeemed Tranche A’s Sukuk facility amounting to USD50 million (RM190.0 million). The USD100 million (RM380 million) Tranche B’s Sukuk facility will mature in December 2006.
The Group is currently making revisions to the earlier rationalization exercise to streamline its core operations. The implementation of the alternative scheme is targeted to be completed by the first quarter of 2006. Meanwhile, its on-going exercise involving the divestment of its non-core activities is expected to follow through in 2005 with the sale of some its manufacturing companies.