On back of waning demand for its services.
Waning demand has weighed down Gaylin Holdings Limited (Gaylin)’s earnings in the third quarter of FY16, as the company booked a net loss of $3.9m during the quarter compared to 3Q15’s profits of $900,000.
According to the company’s media release, its performance in 9MFY15 in particular suffered as the sustained weakness in the global offshore and gas industry coupled with the flagging global economy led to project delays. This, in turn, affected the demand for the company’s products and services in both its rigging and lifting as well as ship handling segments, which respectively dropped S$7m and S$5.1m.
As low oil prices dampen upstream activities while economies like USA and China show signs of weakening, Gaylin asserts that its top priority is to ensure long-term business sustainability. The company says it is on strong footing to ride out the cycle by focusing on business operations optimisation, as well as prudently managing costs to protect margins.
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