Teho's net profit dives 212.6% into the red

Impairment charges of $18.7 million took a blow on earnings.

Teho International's bottom line for its financial year soaks itself in red ink as heavy impairment charges for its properties wrecked its earnings.

It further widened its losses last year of $7.6 million to $23.8 million, a whopping 212.6% slump in its earnings.

This is mainly due to an impairment charge of $2.3 million in goodwill for its marine, offshore oil and gas segments and another $16.4 million for the property segment.

For Teho CEO Lim See Hoe, the group's Marine, Offshore Oil and Gas has shown resilience despite the impairment charges.

“With challenging industry conditions in our key segments, our approach during this period is to proactively take measures to keep our costs low, closely monitor our credit risk exposure and maintain an optimal amount of inventory so that we stay operationally lean and fit to ride out the troughs," he said.

Looking forward, Lim said the group is exploring new markets for its products. He stressed that TEHO will continue to reach out to customers in new geographical areas and industries to identify new sources of income.