In a stock market announcement, THHE said the poor results came about as revenue turned to a negative balance of MYR17.6m due to a disputed variation order resulting in reduction of project scope of an ongoing project. The group had recorded a revenue of MYR26.2m in the previous corresponding quarter.
Losses were also blamed on a one-off loss on the disposal of an associate of MYR56.3m, reduction of project scope of the aforementioned ongoing project as well as lower unrealized forex gain.
As at 30 September 2016, the group had an outstanding order book of MYR8.9m, THHE said. Business has basically come to a standstill for the company with the main construction segment seeing revenue plunge to a negative value of MYR17.4m from MYR15.4m in turnover previously.
Offshore crane works saw sales of just MYR22,000 in the current period from MYR11.8m previously while unsurprisingly, there was no income at all in the offshore services segment.
Looking ahead, THHE said: "The group is exploring various ways to raise funds required to complete the FPSO Layang conversion works and to monetize and unlock the value of the group’s assets to generate cash flows and improve its working capital."
It added: "Moving forward, the group expects the fabrication business to remain challenging in view of the present competitive environment and capex cut as announced by oil majors."
To meet these challenges THHE plans to expand into shipbuilding activities as well as refurbishment and maintenance works and non-oil and gas related fabrication works which are expected to provide a more stable and recurring income to the group.
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