Viking O&M full year profit dives 49%

Profit for the financial year ended 31 December 2014 was reported at SGD1m ($737,000), a plunge of 49% compared to SGD1.99m in the previous financial year.

Singapore-listed Viking O&M said expenses rose and finance costs increased due to costs incurred for bank loans and redeemable exchangeable bonds related to the funding of the asset chartering business.

Revenue for the year, however, went up 12% year-on-year to SGD79m.

Viking O&M said the offshore marine industry remains challenging amid a backdrop of increasing margin pressures and intense competition.

“The recent decline and volatility of global oil prices suggest further dampening of activities and spending in the upstream businesses which will invariably impact the industry and our customers,” the company commented.

“The group has already seen signs of the slowdown in spending or delays in certain offshore and marine projects,” it said.

Viking O&M pointed out that the asset chartering arm should still see opportunity for contracts, albeit at more competitive rates.

“The group had embarked on its asset ownership strategy in FY2013 with the acquisition of 30% stakes in two jack-up rig assets which are expected to be completed – and ready for charter – in the fourth quarter of 2015,” it said, adding that charter negotiations for the rigs are still ongoing.