Email This Print ThisFinancials

Unaudited Financial Statements And Dividend Announcement For The Second Quarter 30 June 2017

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Consolidated Statement Of Comprehensive Income

Profit & Loss

Balance Sheet

Balance Sheet

Review of Performance
HY2017 vs HY2016 and 2Q2017 vs 2Q2016


Review of Performance


  1. Offshore & Engineering includes offshore structures, engineering, manufacturing, inspection and maintenance. This also includes rope access services.
  2. Marine includes stearngear manufacturing and refurbishment works, ship inspection, repair & maintenance services and engineering & fabrication works. This also includes diving services.
  3. Energy Services includes oil sludge and slop reclamation, hydro cleaning oil and gas tanks, encapsulation of wastes prior for landfill disposal and design and launch carbon footprint management initiatives and green initiatives.

Overall, revenue in HY2017 decreased by 27% or $10.0 million to $27.6 million as compared to $37.6 million in HY2016 mainly due to weaker revenue in the Offshore & Engineering segment.

The Group registered a 15% decline in revenue from 2Q2016 to $14.8 million in 2Q2017 as explained above.

Offshore & Engineering segment

Revenue from the Offshore & Engineering segment in HY2017 was $7.5 million, decrease by $8.3 million as compared to $15.8 million in HY2016. The order book at the start of HY2017 was lower than the start of HY2016 as the oil and gas industry remains muted during the current reporting period due to subdued oil prices that brought about a general decline in demands from major customers.

The above also explains the 31% decline in revenue in 2Q2017 as compared to 2Q2016.

Marine segment

Revenue from the Marine segment declined by approximately $1.6 million or 11% to $12.2 million in HY2017 as compared to HY2016 mainly due to lower demand from diving services and repairs and maintenance services. This also explains the decrease in revenue in 2Q2017 as compared to 2Q2016.

Energy Services segment

Revenue from Energy Services was $7.9 million, a marginal decline of $126,000 or a 2% decline from HY2016 of $8.0 million.

In 2Q2017, revenue was up by 10% to $5.1 million when compared to 2Q2016 revenue of $4.7 million, a result of increased work orders from one of the oil super major player as part of its three year service contract signed on March 2015.

Cost of sales, gross profit and gross profit margin

With a lower Group's revenue, cost of sales also decreased by approximately 7% or $2.0 million to $25.8 million in HY2017. This reduction was however not in proportion with the fall in revenue, as revenue from the Offshore & Engineering segment is insufficent to cover its fixed running costs. Consequently, gross profit decreased by $8.0 million to $1.8 million as of HY2017.

This also explains the fluctuations in cost of sales and gross profit in 2Q2017 as compared to 2Q2016.

Other income

The Group's other income for HY2017 of $800,000 decreased by $$885,000 as compared to $1.7 million in HY2016 due mainly to the recognition of a $1.2 million gain on bargain purchase in relation to the acquisition of business and certain assets in Stone Marine Singapore Private Limited in HY2016. The said decrease was offset by higher government grant and other income recognised in 2Q2017 for the claim against former shareholder of subsidiary of $306,000.

The above also explains the decrease in other income in 2Q2017 as compared to 2Q2016.

Administrative expenses

The Group's administrative expenses increased by $520,000 or 7% to $7.7 million, mainly due to higher depreciation expense in relation to two properties being reclassified from disposal group to property, plant and equipment.

These also explain the marginal 4% increase in administrative expense in 2Q2017 as compared to 2Q2016.

Finance expenses

Finance expense of $2.8 million remains relatively the same for both reporting periods ended 30 June 2017 and 2016.

The increase in finance expense of $135,000 or 10% in 2Q2017 was mainly due to lower interest rate on the bank debt refinancing of $50 million term loan offset by higher interest from the $15 million bank borrowings received in 2Q2017.

Income tax

No significant variance for income tax.

Net profit

As the operating environment in the oil and gas industry continued to remain weak, the Group registered a net loss of of $3.0 million and $7.9 million in 2Q2017 and HY2017 respectively as compared to net profit of $1.3 million or $1.5 million in 1Q2016 and HY2016.

The net profit attributable to non-controlling interests for HY2017 remains comparable with HY2016 at $1.2 million. The 2Q2017 net profit attributable to non-controlling interests for 2Q2017 increased by 27% to $1.1 million due to the continuous support from major oil players in the Energy segment.

The Group incurred a net loss attributable to Equity holders of the Company of $4.1 million and $9.2 million in 2Q2017 and HY2017 respectively as compared to a net profit of $387,000 and $283,000 in 2Q2016 and HY2016.


Current assets

Current assets increased by $7.0 million or 10% from $70.6 million as at 31 December 2016 to $77.6 million as at 30 June 2017. This was due to higher cash and cash equivalent arising from draw down of bank loan of $15 million. Trade and other receivables decreased by $4.0 million as a result of intensive collection efforts.

Non-current assets

The marginal decrease of 3% or $7.3 million in non-current assets to $264.5 million as at 30 June 2017 is mainly due to depreciation expense of approximately $8.0 million, partially offset by $1.9 million additions in fixed assets, majority of which came from purchases of machinery for Energy services segment.

Current liabilities

Current liabilities marginally decreased from $64.8 million as at 31 December 2016 to $63.6 million as at 30 June 2017 due to repayment of certain short term loans, invoice financing and monthly repayment on borrowings directly associated with disposal group.

Non-current liabilities

The non-current liabilities increased by 6% or $9.0 million to $164.6 million as at 30 June 2017 mainly due to proceeds of term loans as mentioned above, offset by monthly repayments of long-term loans.

Disposal Group classified as held-for-sale

The Group reclassified certain assets and liabilities under disposal group as held-for-sale as part of the key initiatives of management to dispose of under-utilised assets for cost savings and improve the cash flow position.


The Group's generated a net cash inflow from operating activities of $13.7 million, mainly arose from intensive collection efforts in trade and other receivables of $4.0 million and increases in trade and other payables of $7.1 million.

Due to the uncertainties experienced in the oil and gas turmoil, the Group recorded a minimal investing actitivities during 2Q2017 and HY2017. The marginal purchase of fixed assets is from the Energy segment for its expansion of services to customers.

The Group's financing activities recorded a net cash outflow of $920,000 for HY2017 due mainly to proceeds of $15 million from bank loans, offset with repayments of term loans and hire purchase of approximately $12.2 million and interest payments of $3.8 million.


Our businesses are primarily affected by market conditions in the offshore and marine industries. Factors affecting oil prices continue to remain uncertain, and as oil prices remain low, demand for repair and maintenance of rigs and related goods and services has not picked up. Given the depressed conditions, we expect our offshore and marine businesses to remain challenging in the next 12 months.

We will continue to actively explore diversification opportunities within and outside Singapore. The Group will continue to manage costs and cash flow prudently. The Group's order book as at 30 June 2017 stands at $8.9 million (as at 31 December 2016: $12.1 million).