Blame the industry downturn.
Kim Heng Offshore and Marine reported a net loss of $4.9m in 2015, on back of project delays and low demand for rig maintenance services.
Revenue for the group’s offshore rig services and supply chain management segment declined to $24.9m. The group also failed to sell any vessels and was forced to slash prices of its newbuild projects due to the industry downturn.
“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. 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,” Kim Heng said in its earnings statement.
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