Hyflux: Co will allow its $100.0m order in Tobruk, Libya to lapse due to unrest and will not pursue a potential billion dollar deal for two desalination plants in Libya as well. Given the state of affairs, co has said that it will not look at deals in the nation for some time…
Its order book reported at $2.2b on 7 Mar 2011 had already excluded the $100.0m project which was also probably anticipated by the street. Hence, the negative impact of the news may be limited and this caps the downside risk of news from Libya…
In separate news, Hyflux’s JV co Galaxy NewSpring Capital has closed a 3-yr $138m club facility with Natixis which will be used to refinance a US$66m facility initially borrowed by Hyflux Water Trust Mgmt...
Hyflux now trades at current P/E of 24.9x but price recently has been driven by news of Libya and its Tuas desalination $890.0m contract win. Note that co still has a desalination plant under construction in Magtaa, Algeria.
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