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Unaudited Financial Statements And Dividend Announcement For The Nine Month Financial Period Ended 30 September 2017

Financials Archive

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Consolidated Statement Of Comprehensive Income

Profit & Loss

Balance Sheet

Balance Sheet

Review of Performance
9M2017 vs 9M2016 and 3Q2017 vs 3Q2016


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 9M2017 decreased by 24% or $12.5 million to $40.3 million as compared to $52.9 million in 9M2016 mainly due to weaker revenue in the Offshore & Engineering segment.

The Group registered a 17% decline in revenue to $12.7 million in 3Q2017 as explained above.

Offshore & Engineering segment

Revenue from the Offshore & Engineering segment in 9M2017 was $11.7 million, decrease by $9.4 million when compared to $21.0 million in 9M2016. The order book at the start of 9M2017 was lower than the start of 9M2016 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 21% decline in revenue in 3Q2017 as compared to 3Q2016.

Marine segment

Revenue from the Marine segment declined by approximately $2.5 million or 12% to $17.8 million in 9M2017 as compared to 9M2016 mainly due to lower demand from customers and lower project activity from diving services and repairs and maintenance services. This also explains the decrease in revenue in 3Q2017 as compared to 3Q2016.

Energy Services segment

Revenue from Energy Services for 9M2017 was $10.9 million, decreased by 6% as compared to 9M2016 of $11.6 million.

In 3Q2017, revenue was lower by 16% to $3.0 million when compared to 3Q2016 revenue of $3.6 million, mainly due to the absence of work order from an overseas customer in 3Q2017 as compared to the corresponding quarter last year.

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

Group's gross profit deteriorated from $12.2 million in 9M2016 to approximately $70,000 in 9M2017. Overall, the decline in gross profit in 9M2017 was mainly attributable to a general decline in revenue across the three (3) business segments, particularly for the Offshore & Engineering segment which saw a $12.5 million revenue reduction, reflecting its inability to cover the fixed running costs. This explains the disproportionate reduction in cost of sales when compared to the revenue reduction.

For 3Q2017, the Group reported a gross loss of $1.7 million as compared to a gross profit of $2.4 million in last year same period. This was mainly due to revenue reduction of $2.7 million resulting in variable gross profit (revenue less variable costs) being unable to cover fixed cost.

Other gains- net

The 36% decrease in other gains from $1.3 million in 9M2016 to $826,000 in 9M2017 was due to:

For 3Q2017, the Group recorded other gains (net) of $26,000 as compared to other losses (net) of $393,000 in 3Q2016, due mainly to:

Administrative expenses

The Group's administrative expenses for 9M2017 is $1.4 million higher than 9M2016 of $10.3 million. The increase was mainly due to:

These also explain the 27% increase in administrative expense in 3Q2017 as compared to 3Q2016.

Finance expenses

Finance expense of $4.4 million and $1.6 million remains unchanged for both reporting periods ended 9M2017/3Q2017 and 9M2016/3Q2016.

Income tax

No significant variance for income tax.

Net loss

Consequent to the above, the Group incurred a net loss attributable to Equity holders of the Company of $16.3 million and $7.1 million in 9M2017 and 3Q2017 respectively as compared to a net loss of $2.5 million and $2.8 million in 9M2016 and 3Q2016 respectively.

The net profit attributable to non-controlling interests for 9M2017 remains comparable with 9M2016 at $1.2 million. 3Q2017 net loss attributable to non-controlling interests of $83,000 was lower by $162,000 when compared to 3Q2016.


Current assets

Current assets increased from $70.6 million as at 31 December 2016 to $70.9 million as at 30 September 2017 mainly due to higher cash and cash equivalents arising from the drawdown of bank facilities offset by decrease in trade and other receivables of $4.3 million.

Non-current assets

Non-current assets decreased by 4% or $10.9 million from $271.8 million as at 31 December 2016 to $260.8 million as at 30 September 2017 mainly due to depreciation expense of $12.1 million for the period ended 9M2017 partially offset by fixed asset purchases of $3.1 million.

Current liabilities

Current liabilities of the Group as at 30 September 2017 remains comparable at $64.8 million as compared to 31 December 2016.

Non-current liabilities

Non-current liabilities rose by $4.9 million from $155.6 million as at 31 December 2016 to $160.5 million as at 30 September 2017 mainly due to drawdowns of new term loans as mentioned above, offset by monthly repayments of long-term loans and finance lease liabilities.

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 cash and cash equivalents increased by $5.6 million from $7.4 million in 31 December 2016 to $13.0 million in 30 September 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 $17.1 million as at 30 September 2017 arising from intensive collection efforts in trade and other receivables of $4.3 million and increases in trade and other payables of $10.7 million.

The Group had minimised its capital expenditure in response to the weak demands in the oil and gas industry and hence, recorded minimal investing actitivities of $1.0 million for 9M2017. The marginal capital expenditure mainly relates to the Energy segment for its expansion of services to customers.

Net cash used in financing activities for 9M2017 amounted to $9.0 million, mainly due to repayment of bank borrowings, finance lease liabilities and interest payments totalling to $24.3 million, offset by proceeds from new bank borrowings of $15.5 million.


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.

We do not foresee the operating environment for our businesses improving significantly in the next 12 months. The demand for our repair and maintenance works and related goods and services remains weak and price-sensitive, and the credit tightening in the industry continue to be a challenge for many industry players.

We will continue to actively explore diversification opportunities within and outside Singapore. The Group will continue to manage costs and cash flow prudently. Group's order book as at 30 September 2017 stands at $10.4 million (as at 31 December 2016: $12.1 million).

The Company is making efforts to deal with the present financial challenges. As announced on 28 September 2017, it is still in continuous discussions with various parties in relation to transactions which may involve the divestment of assets or other form of corporate exercises. No definitive agreement or contract has been signed at this juncture, and there is no certainty or assurance as to whether any transaction will materialise. The Company will make appropriate announcements as and when there is any material development. Meanwhile, shareholders are advised to exercise caution when dealing in the shares of the Company.

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