Kim Heng Offshore & Marine sees red on reduced rig maintenance jobs

Loss for the quarter ended 30 September 2015 was recorded at SGD1.73m ($1.22m), as against the profit of SGD1.15m in the year-ago period.

Third quarter revenue fell by 23% year-on-year to SGD10.61m due mainly to delays in projects and continued low demand for maintenance of rigs as oil prices stay weak.

“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,” Singapore-listed Kim Heng commented.

“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,” the company said.

It added that it will also continue to assess potential merger and acquisition opportunities. “The group’s current strong cash position allows us to undertake expansion activities and additional projects, which will put the group in good stead to capitalise on the attractive valuations of prospective targets.”