02-04-2018, 06:32 PM
Financial Review
3QFY2018 losses narrow amid challenging market
Improvement in Oilfield Engineering segment but Subsea activities remain
subdued
The Group reported S$28.2 million revenue for 3QFY2018, a decrease of 10% year-on-year.
The Group’s gross profit margin for the quarter was 16.3% reflecting competitive pricing
pressures.
The Group’s efforts in cost cutting continue to yield positive results which saw the Group’s
other operating expenses and staff costs reduce as compared to the prior periods. Finance
costs also declined due to the lower borrowings during the year. Share of joint venture results
was weaker mainly due to certain tender processes taking longer than expected.
Overall, the Group’s losses from continuing operations narrowed slightly on the back of better
results from the Oilfield Engineering segment. The subsea businesses in Australia remained
subdued.
Results & outlook
Commenting on the financial results and outlook, Mr Kuah Boon Wee, Group Chief Executive
Officer said,
“In our oilfield engineering segment, we recorded a modest improvement for the
quarter and the level of inquiries is more encouraging. Our Subsea Service business
recorded a weak quarter and while general sentiment is improving, regaining
profitability will take more time. Our marketing efforts are focused on targeting the
Middle East and Southeast Asia areas.
While our net debt gearing remains very modest, we are conscious that we have yet to
return to profitability as a Group. That said, improving market sentiments will also
generate opportunities. Thus the Group will look to further strengthen its financial
position through this prolonged downturn.”
3QFY2018 losses narrow amid challenging market
Improvement in Oilfield Engineering segment but Subsea activities remain
subdued
The Group reported S$28.2 million revenue for 3QFY2018, a decrease of 10% year-on-year.
The Group’s gross profit margin for the quarter was 16.3% reflecting competitive pricing
pressures.
The Group’s efforts in cost cutting continue to yield positive results which saw the Group’s
other operating expenses and staff costs reduce as compared to the prior periods. Finance
costs also declined due to the lower borrowings during the year. Share of joint venture results
was weaker mainly due to certain tender processes taking longer than expected.
Overall, the Group’s losses from continuing operations narrowed slightly on the back of better
results from the Oilfield Engineering segment. The subsea businesses in Australia remained
subdued.
Results & outlook
Commenting on the financial results and outlook, Mr Kuah Boon Wee, Group Chief Executive
Officer said,
“In our oilfield engineering segment, we recorded a modest improvement for the
quarter and the level of inquiries is more encouraging. Our Subsea Service business
recorded a weak quarter and while general sentiment is improving, regaining
profitability will take more time. Our marketing efforts are focused on targeting the
Middle East and Southeast Asia areas.
While our net debt gearing remains very modest, we are conscious that we have yet to
return to profitability as a Group. That said, improving market sentiments will also
generate opportunities. Thus the Group will look to further strengthen its financial
position through this prolonged downturn.”
