Viking O&M profit slips in Q2

Viking O&M posted a profit of SGD89,000 ($70,960) in the quarter ended 30 June 2014, down 16% compared to SGD255,000 in the same period of last year.

Revenue dipped 3% year-on-year to SGD16.3m while other income fell to SGD149,000 from SGD823,000 due to the absence of rental income after the expiry of a long term sub-letting lease for a building.

“The offshore and marine industry remains challenging amidst a backdrop of increasing margin pressures and intense competition,” Singapore-listed Viking O&M commented.

In a bid to create additional stream of revenue, Viking O&M has commenced its asset ownership strategy 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.

“The group continues to be on the lookout for similar opportunities to acquire earnings-accretive offshore and marine and related assets which can offer recurring revenue, as part of efforts to enhance shareholder value,” Viking O&M said.