This printed article is located at


Unaudited Financial Statements And Dividend Announcement For The Nine Month Financial Period Ended 30 September 2018

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
3Q2018 vs 3Q2017 and 9M2018 vs 9M2017


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 and dredging and reclamation works.
  3. Energy Services include oil sludge and slop reclamation, hydro cleaning oil and gas tanks, encapsulation of wastes prior to landfill disposal and design and launch carbon footprint management initiatives and green initiatives.

Overall, revenue for 9M2018 rose by 22% or $9.0 million to $49.3 million as compared to $40.3 million in 9M2017. The 22% revenue growth was mainly attributable to a stronger revenue contribution from the Marine segment.

Offshore & Engineering segment

Revenue from the Offshore & Engineering segment remained resilient at approximately $11 million for both 9M2018 and 9M2017 reporting periods.

In 3Q2018, this segment however recorded a $819,000 decrease or 6% in revenue when compared to $4.2 million revenue in 3Q2017. This was mainly due to lower demands from rope access and offshore business activities.

Marine segment

Marine segment contributed 55% or $27.1 million to the Group's revenue in 9M2018. On the whole, it recorded a revenue growth of $9.3 million or 23% when compared to 9M2017 revenue of $17.8 million which was mainly due to:

These also explained the fluctuation in revenue in 3Q2018 as compared to 3Q2017.

Energy Services segment

Energy Services segment revenue remained comparable at $11.0 million for both reporting periods in 9M2018 and 9M2017.

3Q2018 revenue increased by 7% or $0.9 million to $3.9 million when compared to 3Q2017 of approximately $3.0 million, due mainly to increased work orders of $0.3 million from an existing customer and revenue contributions of $0.6 million from the Group's waste treatment plant.

Cost of sales, gross profit and gross profit margin

On the back of stronger revenue and lower depreciation charges in 9M2018 (a result of impairments undertaken in FY2017), the Group registered a gross profit margin over revenue of 13% or a gross profit of $6.3 million in 9M2018, as compared to a breakeven position in gross margin/ profitability in 9M2017.

This also explained the fluctuations in cost of sales and gross profit in 3Q2018 as compared to 3Q2017.

Other gains/(losses) - net

Other gains increased by $3.1 million, from $0.7 million in 9M2017 to $3.8 million in 9M2018.

The above also explained the increase in other gains in 3Q2018 as compared to 3Q2017.

Administrative expenses

The Group's administrative expenses remained relatively similar for both reporting periods in 9M2018 and 9M2017.

Administrative expenses in 3Q2018 increased by $0.3 million from $3.9 million in 3Q2017 to $4.2 million in 3Q2018, due mainly to the award of performance shares to key management employees of $240,000 coupled with administrative expenses incurred by newly incorporated subsidiaries.

Finance expenses

Finance expenses remained relatively similar for reporting periods ended 9M2018/9M2017 and 3Q2018/3Q2017.

Income tax

The Group recognised a tax charge of $358,000 in 9M2018 mainly due to provision of current income tax from its profitable Energy and Marine segments

Net profit

Consequent to the revenue growth and increase in other gains, net loss before income tax for the Group was reduced by 60%, from $15.1 million loss in 9M2017 to $6.0 million loss in 9M2018.

Net loss attributable to equity holders of the Company in 9M2018 dropped by 58% from $16.3 million in 9M2017 to $6.9 million in 9M2018.

These also explained the fluctuation in Group's net loss and net loss attributable to equity holders of the Company in 3Q2018 as compared to 3Q2017.


Current assets

As at 30 September 2018 the Group's current assets at $47.9 million increased by 9% or $3.8 million as compared to $44.1 million as at 31 December 2017. The increase was mainly attributable to reclassification of asset balances, amounting to $5.9 million, from non-current assets to current assets, which were mainly related to the leasehold land and building in Changshu Honghua. As previously announced, the Company through S & W Pte Ltd, its wholly owned subsidiary, entered into a Sale and Purchase Agreement ("SPA") for the disposal of the entire stake in Changshu Honghua. The Group had in 2Q2018 recognised and reclassified the assets and liabilities directly associated with Changshu Honghua to current assets/liabilities as "Assets/Liabilities of disposal group classified as held for sale".

The increase was offset by a net reduction of $2.2 million in other current assets balances, as follows:

Non-current assets

Non-current assets decreased by $9.4 million, from $215.5 million as at 31 December 2017 to $206.1 million as at 30 September 2018, due to the movements in the property, plant and equipment:

Current liabilities

Current liabilities declined by $135.3 million or 64% from $210.9 million as at 31 December 2017 to $75.6 million as at 30 September 2018, mainly due to reclassifications of significant portion of current borrowings to non-current liabilities, as explained below (under Non-current liabilities).

Trade and other payables increased by $4.4 million or 27% from $16.4 million as at 31 December 2017 due mainly to the following:

The liabilities directly associated with the disposal group classified as held-for-sale stood at $30,000 being 3rd party payables.

Non-current liabilities

The non-current liabilities rose by $137.1 million, from $8.6 million as at 31 December 2017 to $145.7 million as at 30 September 2018. The Company had on 8th May 2018 received a letter from one of our principal bankers on our non-compliance in financial covenants. The bank has accommodated the said breach on a one-off basis for 2017 and 2018 financial year. As at 30 September 2018, the Company had reclassified approximately $138.6 million of its borrowings from current to non-current liabilities.


Cash and cash equivalents for the Group were approximately $10.0 million for reporting periods as at 30 September 2018/30 September 2017 respectively. The Group reported a net cash inflow from operating activities of $8.6 million in 9M2018 due mainly to its operating income before changes in working capital of $7.7 million.

Net cash used in investing activities of $2.1 million was mainly due to the purchase of fixed assets of $5.6 million, of which $2.9 million was related to the purchase of a vessel by the Group's new dredging and reclamation business in 3Q2018 and the balance amount of $2.7 million was incurred on rectification works for the Group's 42A Penjuru property over the period 9M2018 (3Q2018 : $0.9 million). This was offset by the release of a $2.0 million fixed deposits pledged and net proceeds from disposal of fixed assets of $1.4 million.

Net cash used in financing activities of $8.5 million as at 30 September 2018 was mainly a result of repayments of term loans, finance lease liabilities and payment of interests of approximately $20.4 million, offset by proceeds from bank borrowings of $12.8 million.


The Group reported revenue growth of approximately 22% for 9M2018. The level of customer enquiries across the Group's business segments is generally improving.

Notwithstanding the improved conditions in the marine and offshore, oil and gas industry, the Group expects market conditions to be competitive and pressure on margins will persist. As such, the Group is cautious over its industry outlook.

The Group has outstanding orders amounting to approximately $44.8 million as at 30 September 2018. Deliveries for these orders are expected to spread over the next 24 months.

Please read our General Disclaimer & Warning carefully.  Use of this Website constitutes acceptance of the Terms of Website Use.
Copyright © 2019. All Rights Reserved.