“As oil prices remain low, downward pressure on offshore exploration activities has not alleviated and the demand for maintenance of rigs and related goods and services has not picked up,” Kim Heng said.
“Given the current conditions in our operating environment, we expect our business to remain challenging in the next 12 months. We continue to actively explore diversification opportunities into the maritime and marine infrastructure sector,” it stated.
In May this year, the company announced a potential partnership with the Iran Marine Fund to explore the provision of technical expertise and financing to Iranian offshore marine and oil and gas projects.
In earnings, Singapore-listed Kim Heng registered a first half loss of SGD3.14m ($2.33m), widening from the deficit of SGD1.73m in the previous corresponding period.
Revenue in the first six months was recorded down 40% year-on-year to SGD16.48m due mainly to continued low demand for maintenance of rigs and related goods and services, and no projects undertaken during the second quarter this year from its vessel sales and newbuild segment.
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