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Unaudited Financial Statement And Dividend Announcement For The First Financial Quarter 31 March 2018

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Consolidated Statement Of Comprehensive Income

Profit & Loss

Balance Sheet

Balance Sheet

Review of Performance
1Q2018 vs 1Q2017


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 for 1Q2018 rose by 18% or $2.3 million to $15.0 million as compared to $12.8 million in previous year same quarter. The 18% revenue growth was mainly attributable to stronger performance in the Marine and Energy services segments, while Offshore and Engineering segment remains resilient.

Offshore & Engineering segment

Revenue from the Offshore & Engineering segment remains relatively the same at $3.5 million for both reporting periods. The slight decline in revenue was a result of lower activities from the rope access services.

Marine segment

Marine segment recorded a 16% revenue growth in 1Q2018 to $7.4 million when compared to last year same quarter which was mainly related to improved performance in diving services of $0.5 million. Increases in customer demand for our maintenance and repair services on vessel propellers also generated an incremental $0.5 million revenue to the segment.

Energy Services segment

Energy services segment continues to grow its revenue from $2.8 million in 1Q2017 to $4.1 million in 1Q2018 mainly due to continuous support and increased demand from its existing customers.

Cost of sales, gross profit and gross profit margin

Consequent to the revenue growth, gross profit of the Group improved by 455% or $1.3 million to $1.5 million as compared to $0.3 million in 1Q2017. This was mainly attributable to lower depreciation (a result of impairments undertaken by Offshore and Engineering segment in FY2017), but was offset by higher materials and sub-contractor costs, in line with the revenue increase.

Gross profit margin improved from 2% in 1Q2017 to 10% in 1Q2018 as a result of lower fixed overhead during the current reporting period as explained above.

Other income

Other income increase by $0.9 million from $0.3 million in 1Q2017 to $1.2 million in 1Q2018.

Administrative expenses

The Group's administrative expenses decreased by $0.4 million or 9% to $3.8 million in 1Q2018, mainly due to savings from various administrative expenses such as legal and consultancy fees, depreciation expense, upkeep of office buildings and advertising expenses, among others.

Finance expenses

Finance expense increased marginally by 6% or $0.1 million to $1.4 million in 1Q2018 mainly due to additional interests from the utilisation of $15 million bank borrowings being drawdown in 2Q2017.

Income tax

The Group recognised a tax charge of $172,000 mainly due to provision of current income tax from its Energy segment.

Net loss

On the back of higher revenue, the Group was able to halve its net loss before tax, from $4.9 million loss in 1Q2017 to $2.4 million in the current reporting period.

The net loss attributable to equity holders of the Company in 1Q2018 was $3.0 million as compared to $5.1 million in 1Q2017.


Current assets

Current assets decreased by 13% or $5.6 million from $44.1 million as at 31 December 2017 to $38.5 million as at 31 March 2018, mainly attributable to decreases in cash and cash equivalents of $5.7 million of which the details are highlighted in the Review of Statement of Cash Flows.

Non-current assets

The marginal decrease of 1% or $1.7 million in non-current assets was due to depreciation expense recognised during the current reporting period of $3.4 million offset by additions of fixed assets of $1.7 million.

Current liabilities

Current liabilities decreased by 2% from $210.9 million as at 31 December 2017 to $207.5 million as at 31 March 2018, mainly due to repayment of bank borrowings of $3.5 million.

Non-current liabilities

Non-current liabilities of $8.1 million as at 31 March 2018 was $0.5 million lower when compared to $8.6 million as at 31 December 2017, a result of monthly repayment of term loans.

Net current liabilities position

As at 31 March 2018, the Group registered a negative working capital of $169.0 million (FY2017: $166.8 million) mainly due to breaches of certain financial covenant clauses on most of its loan agreements, and accordingly, the Group had reclassified significant portion of its non-current borrowings into current liabilities of approximately $145.0 million (FY2017: $145.4 million).

Currently, the Group, together with its financial advisor, are in the midst of discussion with its banks on a debt restructuring plan which will include, among others, moratorium of loan principal repayment for a certain period and longer repayment terms.


Net cash provided by operating actitivities was registered at $1.6 million as a result of strong collection of trade and other receivables and net increase in trade and other payables and contract liabilities.

Net cash of $1.3 million was generated from investing activities as a result of the release of a $2.1 million fixed deposits pledged and net proceeds from disposal of fixed assets of $0.7 million, offset by purchases of fixed assets of $1.4 million.

Net cash used in financing activities of $6.6 million as at 31 March 2018 was mainly due to repayments of term loans, finance lease liabilities and payment of interests of approximately $10.6 million, offset by proceeds from bank borrowings of $4.6 million.


The downturn in the offshore and marine industry, and oil and gas sector in the past few years had taken its toll on businesses and companies within the industry. The outlook of the industry is expected to stay challenging.

Group's order book as at 31 March 2018 stands at $18.0 million (as at 31 December 2017: $15.5 million).