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EMS Energy on Tuesday posted a net loss of S$10.2 million for its fiscal year ended Dec 31, 2015. This was a reversal from a net profit of S$15.4 million a year ago.
Revenue fell 36.9 per cent to S$68.9 million. This was mainly due to a reduction in revenue from engineering, procurement and construction management - marine and offshore & trading segments.
There was an absence of revenue recognised from major projects in the corresponding year-ago period too, it said.
Gross profit margin also reduced to 18.8 per cent for FY2015 compared to 27.8 per cent for FY2014, due to an allowance for foreseeable losses and cost overrun for some smaller projects.
Looking ahead, the company said: "The offshore, marine and energy industry worldwide remained gloomy due to the continuing low world crude oil prices. Compounding to this situation, the restrictions to foreign workers have contributed to a labour shortage which has been felt particularly in the sector that the group operates in. These factors have led to industry-wide project delays and pressure on margins."
EMS Energy plans to streamline its core operations, which include cutting costs and manpower, and building up its business and securing more after-market sales orders and long-term assets chartering contracts to ensure steady stream of recurring income.