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Condensed Interim Financial Statements For The Six Months Ended 30 June 2022

Financials Archive

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Profit & Loss


Balance Sheet

Review of Performance
Review of Statement of Comprehensive Income


Overall, the Group's revenue declined by $2.01 million or 10%, from $19.72 million in HY2021 to $17.71 million in HY2022, across its three segments:

  • Marine segment - lowered by $1.23 million;
  • Offshore & Engineering segment - lowered by $0.44 million;
  • Energy services - lowered by $0.34 million

Offshore & Engineering segment

The $1.23 million decline in revenue for Offshore & Engineering segment was mainly due to:

  • decline in revenue from precision engineering business of $1.02 million from $2.62 million in HY2021 mainly due to lower volume of work done of approximately $1.0 million for a customer in HY2022 as compared to HY2021;
  • decrease in order from heat exchanger business from $53,000 in HY2021 to $3,000 only in HY2022; offset with
  • higher volume of work done on offshore structure and steel fabrication in HY2022 of $2.42 million from $1.71 million in HY2021.

Marine segment

Revenue for the Marine segment declined by $1.23 million or 14%, from $8.51 million in HY2021 to $7.28 million in HY2022, which was attributable to:

  • decrease in the segment's MRO (maintenance, repairs and overhaul) services by $1.38 million, from $4.97 million in HY2021 to $3.59 million, mainly due to lower demands and/or volume of work done for recurring customers; offset with
  • marginal increase of $151,000 from new build propellers from $3.54 million in HY2021 as compared to $3.69 million in HY2022.

These also explained the fluctuation in Marine segment revenue in 2HY2021 as compared to 2HY2020.

Energy Services segment

Revenue from the waste treatment business decreased marginally by $0.34 million or 5% from $6.83 million in HY2021 to $6.49 million in HY2022 because of lower work orders from a major customer

Cost of sales, gross profit and gross profit margin

Cost of sales decreased by 8% or $1.19 million to $14.14 million in HY2022, mainly arose from the decline in Marine segment of $1.23 million which was in line with a lower revenue.

Overall, the gross profit of the Group decreased by $0.82 million from $4.39 million in HY2021 to $3.57 million in HY2022. The decrease was mainly from the Energy Services segment incurring higher energy and running costs in the treatment of waste.

Consequently, the Group's gross profit margin, as a percentage over revenue, decreased from 22% in HY2021 to 20% in HY2022.

Other gains/(losses) - net

Detailed explanations of these gains/(losses) were highlighted in Part E, Note 5.

Administrative expenses

Administrative expenses decreased by $422,000 or 8% mainly due to lower professional fee of $202,000 and bank charges of $191,000.

Finance expenses

Finance expenses remained relatively the same for both reporting periods HY2022/HY2021 at $2.0 million.

Share of loss of associated companies

The Group recorded a share of losses of $155,000 from its two associated companies in HY2022 as compared to share of net profit of $285,000 mainly due to loss from operations from its two associated companies during HY2022.

Income tax expense

Detailed explanations of income tax expense were highlighted in Part E, Note 7.

Profit from continuing operations

The Group recorded a net profit from continuing operations of approximately $0.3 million for both reporting periods.

Review of Balance Sheet

Current assets

As at 30 June 2022, the Group's current assets decreased by $2.46 or 2% from $112.47 million as at 31 December 2021 due to:

  • decrease in cash and cash equivalents by 17% or $2.42 million as explained (please refer Review of Condensed Interim Consolidated Statement of Cash Flows);
  • net decrease in trade and other receivables of $0.92 million in line with the reduction in Group’s revenue;
  • decrease in contract assets of $0.81 million was a result of higher billings to customers where the right to payment became unconditional. These billings were mainly related to the Group’s offshore structure & steel fabrication business and diving business; offset with
  • increase in inventories of $1.12 million mainly due to higher volume of on-going projects expected to be delivered in 2HY2022; and
  • increase in assets of disposal group by $0.57 million mainly due to reclassification from property, plant and equipment to disposal group of $0.62 million directly related to 107 Gul Circle, as explained in Part E, Note 10.
Non-current assets

The Group's non-current assets of $98.81 million as at 30 June 2022 was down by 6% or $6.31 million, from $105.12 million as at 31 December 2021. The decrease was mainly due to:

  • decrease in property, plant and equipment of $5.82 million as explained in Part E, Note 12;
  • decrease in investment in associated companies of $0.37 million as disclosed in Part E, Note 11.
Current liabilities

The Group's current liabilities decreased by $1.09 million or 1% to $89.21 million as at 30 June 2022, as compared to $90.30 million as at 31 December 2021, mainly due to:

  • decrease in trade and other payables of $3.57 million, mainly due to payment of trade and offsetting of payables, accruals and GST payables;
  • decrease in current borrowings of $0.62 million, due to the following:
  • reclassification from current borrowings to liabilities under disposal group of approximately $0.78 million directly related to 107 Gul Circle as explained in Part E, Note 10;
  • payment of Subsea borrowings as part of SPA; offset with
  • increase in contract liabilities mainly from advances received from customers of approximately $2.08 million for new built propellers;
  • increase in liabilities under disposal group, as explained above.
Non-current liabilities

Non-current liabilities of the Group as at 30 June 2022 reduced by $7.80 million or 8%, from $95.76 million as at 31 December 2021 to $87.96 million as at 30 June 2022. This was mainly due to reduction in non-current borrowings as a result of monthly repayment of bank loans and lease liabilities.

Review of Condensed Interim Statement of Cash Flows

Overall, the Group's cash and cash equivalents in HY2022 declined by $2.42 million, from $14.31 million as at 31 December 2021 to $11.89 million as at 30 June 2022. The Group reported a net cash provided in operating activities of $5.64 million as a result of its operating income before changes in working capital of $6.69 million and net increase in working capital of $1.05 million.

Net cash provided by investing activities of $0.53 million mainly due to the following:

  • proceeds from disposal of subsidiary corporations of $1.95 million; and
  • dividend income received from an associated company for $200,000; offset with.
  • purchase of PPE of $1.59 million of which $1.07 million was related to capacity expansion on Energy Services segment.

Net cash used in financing activities of $8.55 million was mainly related to the net payment of bank borrowings $6.01 million, lease liabilities of $0.73 million and interest payments of $1.81 million.


Amidst the current macroeconomic factors such as rising interest & inflation rates, higher raw material, commodities and energy costs, the performance of the Group remained relatively similar as compared to last year same period, notwithstanding the cessation of government grants of $0.4 million for the current reporting period.

In view of the current volatile environment, the Group expects the overall business environment under its Marine and Energy segments to be challenging, although typically the 2H operating performance, before exceptional and non-recurring item, would be better than the 1H operating performance.

The Group will exercise caution while continuing to pursue organic growth as well as to grow and expand its existing core business. With the current level of high oil prices, customers enquiries for the Marine segment's MRO services are improving generally. The order book for new build propellers is healthier in the second half of 2022 with outstanding orders of approximately $7.0 million.

The performance of the Group’s Energy segment has temporarily impacted its plant activities owing to COVID-19 virus. Work commitments were re-scheduled to the month of July and August 2022 accordingly.

The segment is currently seeking new licenses to expand its waste management businesses.

The Group continues to strive for new business opportunities while controlling its operational cost to ensure resiliency in its businesses.

The Group had embarked on ESG initiatives leveraging our integrated engineering and manufacturing capabilities to explore and expand to new growth areas.