2 surprises from Venture's 4Q12 profit report

Income dipped 0.3% to $37.8m.

According to Nomura, Venture reported 4Q12 net profit of SGD37.8mn (+16.6% q-q, -0.3% y-y), 5% lower than our expectation of SGD 39.5mn. 

Net profit had two surprise items, says Nomura: 1) share of profits of associates came in at SGD3.1mn vs a high of SGD1.5mn in 1Q12 over the last seven years; 2) this is largely offset by reported income tax of SGD3.3mn as management took provisions for end of tax incentives at one of Venture’s facilities.

Management noted that it is seeking renewal of the incentives and may write back gains later.

Here's more from Nomura:

Venture cut its dividend from SGD0.55/shr to SGD0.50. Management sees the cut as prudent given the expected increase in 2013F capex and continued macro-environment uncertainty keeping growth outlook muted.

While management did not rule out further changes to the dividend, it sees SGD0.50/shr as something which can be maintained.