The auditor pointed out that Singapore-listed Atlantic Navigation incurred a loss of $11.42m for 2016 and the group’s current liabilities exceeded its current assets by $39.71m.
“These factors indicate the existence of a material uncertainty which may cast significant doubt about the group’s ability to continue as a going concern,” Ernst & Young stated in a report.
“The group’s ability to continue as a going concern is dependent on its ability to secure funding to support its working capital requirements as well as committed capital expenditure in the near term and obtain support from various parties to restructure its loans and borrowings so as to enable it to meet its financial obligations,” the auditor said.
Atlantic Navigation, a marine logistics services provider, took an impairment loss of $2.27m for its 19 vessels which had a carrying value of $102.47m as at 31 December 2016. Its fleet comprises a variety of AHT, AHTS, multipurpose support vessels, liftboats and accommodation barges.
The auditor further highlighted the Atlantic Navigation’s trade receivables of $9.54m as at 31 December 2016 “were significant to the group as they represent 69% of the total current assets as at 31 December 2016.”
“The credit worthiness of customers may be impacted by certain micro and macroeconomic conditions, resulting in overdue trade receivables,” Ernst & Young stated.
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