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Unaudited Financial Statements And Dividend Announcement For The Full Year Ended 31 December 2017

Financials Archive

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Consolidated Statement Of Comprehensive Income

Profit & Loss

Balance Sheet

Balance Sheet

Review of Performance
4Q2017 vs 4Q2016 and FY2017 vs FY2016


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 FY2017 decreased by 14% or $8.4 million to $51.7 million as compared to $60.1 million in FY2016 mainly due to weaker revenue in the Offshore & Engineering segment and Marine segment whereas the Energy segment remains comparable year-on-year.

The Group registered a 58% increase in revenue to $11.4 million in 4Q2017. The increase in revenue came from three (3) business segments particularly from Offshore & Engineering segment as explained below.

Offshore & Engineering segment

Revenue from the Offshore & Engineering segment in FY2017 was $14.1 million, decrease by $7.2 million when compared to $21.2 million in FY2016. The order book at the start of FY2017 was lower than the start of FY2016 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.

4Q2017 revenue from this segment increased by $2.2 million as compared to 4Q2016 mainly due to substantial completion of certain projects in 4Q2017.

Marine segment

Revenue from the Marine segment for FY2017 of $22.3 million declined by 7% when compared to $23.9 million revenue registered in FY2016 mainly due to lower demand from customers and lower project activity from diving services and repairs and maintenance services.

In 4Q2017, the Marine segment recorded a 25% increase in its revenue when compared to $3.6 million revenue in 4Q2016 mainly due from its diving services which registered $838,000 higher revenue in 4Q2017 as compared to 4Q2016.

Energy Services segment

Revenue from Energy Services for FY2017 was $15.4 million, a marginal increase by 2% as compared to FY2016 of $15.0 million.

In 4Q2017, revenue was 30% higher when compared to 4Q2016 revenue of $3.4 million, mainly due to continuous support of major oil & gas players in Singapore.

Cost of sales, gross profit and gross profit margin ("GP%")

The Group reported a gross loss of $4.2 million for the year ended 31 December 2017 as compared to a gross profit of $7.2 million in previous year. Overall, the decline in gross profit in FY2017 was mainly attributable to:

These also explain the fluctuations in gross loss and gross loss margin in 4Q2017 as compared to 4Q2016.

Other losses - net

The Group recorded an increase in other losses- net by $41.2 million from $13.0 million in FY2016 to $54.2 million in FY2017.

Administrative expenses

The Group's administrative expenses for FY2017 marginally increased by 4% from $15.4 million in FY2016 to $16.0 million in FY2017.

The 13% decrease in administrative expenses in 4Q2017 of $4.4 million from $5.1 million in 4Q2016 is mainly due to:

Finance expenses

Increase in finance expense of $0.7 million to $5.8 million in FY2017 was mainly due to:

These also explain the increase in finance expense in 4Q2017 as compared to 4Q2016.

Income tax

Income tax expense in FY2017 was $475,000 as compared to $46,000 in FY2016. The increase was mainly due to under-provision of deferred income tax charged to profit or loss by a subsidiary in the Marine segment.

Net loss

Consequent to the above, the Group incurred a net loss attributable to Equity holders of the Company of $82.0 million and $65.7 million in FY2017 and 4Q2017 respectively as compared to a net loss of $26.9 million and $24.4 million in FY2016 and 4Q2016 respectively.

The net profit attributable to non-controlling interests for FY2017 increased by $888,000 from $544,000 in FY2016 to $1.3 million in FY2017. 4Q2017 net income attributable to non-controlling interests of $127,000 was higher by $888,000 or 117% when compared to 4Q2016 net loss of $761,000.

Excluding the impairment charges, the net loss for 4Q2017 and FY2017 will be $9.9 million and $25.0 million as tabulated below:

Review of Performance


Current assets

Current assets of the Group decreased by 37% from $70.6 million as at 31 December 2016 to $44.1 million as at 31 December 2017. The decrease was mainly due to:

Non-current assets

Non-current assets decreased by $56.3 million or 21% from $271.8 million as at 31 December 2016 to $215.5 million as at 31 December 2017 mainly due:

Current liabilities

Current liabilities of the Group as at 31 December 2017 marginally increased by 1% or $798,000 from $64.8 million as at 31 December 2016.

Non-current liabilities

Non-current liabilities marginally declined by 1% from $155.6 million as at 31 December 2016 to $153.9 million as at 31 December 2017.

Net current liabilities position

Consequent to the reduction in current assets (as explained above), the current liabilities of the Group exceed the current assets by $21.4 million.

Disposal Group classified as held-for-sale

On 4 December 2017, the Group completed the disposal of leasehold industrial property located at 11 Tuas Basin Close, Singapore 638806 at a loss of $310,000.


The Group's cash and cash equivalents increased by $7.3 million from $7.4 million as at 31 December 2016 to $14.7 million as at 31 December 2017.

In tandem with the Group's continuous effort in monitoring its working capital requirements, it registered a net cash inflow from operating activities of $28.9 million as at 31 December 2017 arising from intensive collection efforts in trade and other receivables of $20.7 million and increases in trade and other payables of $15.5 million.

The Group had minimised its capital expenditure in response to weak demands in the oil and gas industry and hence, recorded minimal investing activities of $3.0 million for FY2017. The marginal capital expenditure mainly relates to the Energy segment for its expansion of services to customers.

Net cash used in financing activities for FY2017 amounted to $22.9 million, mainly due to repayment of bank borrowings, finance lease liabilities and interest payments totalling to $38.3 million, offset by proceeds from new bank borrowings of $15.9 million and dividends paid to non-controlling interests of $600,000.


The continued weakness in the outlook and business condition for the O&G industry has created a challenging business environment for the Group whose products and services demands are generally driven by the overall performance of the industry.

The Group had breached various financial covenants of the banks. The Company is in discussions with the banks to arrive at an overall re-financing solution. In this regard, the Group continues to use the going concern basis in preparing the financial statements.

As announced on 28 September 2017 and 11 November 2017, the Company is in continuous discussions with various parties in relation to transactions which may involve the divestment of assets or other form of corporate exercises.

The Company will make appropriate announcements as and when there is any material development.

Group's order book as at 31 December 2017 stands at $15.5 million (as at 31 December 2016: $12.1 million).

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