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EMS Energy reverses into loss in H1, warns of 'storm' ahead for industry

Wednesday, August 10, 2016 - 08:04

EMS Energy on Wednesday posted a net loss of S$2.9 million for the first six months ended June 30, 2016. This was a reversal from a net profit of S$1.2 million a year ago.

Revenue also saw a huge 64.5 per cent drop to S$16 million.

Loss per share was 0.64 Singapore cent, versus earnings per share of 0.27 cent a year ago.

The engineering firm, which serves the marine, oil and gas industries, said the revenue decline was due to lower revenue from its "engineering, procurement and construction management - marine and offshore & trading" segment, which contributed S$9.9 million, compared to S$38.9 million in the previous year.

This, in turn, affected its earnings for the period.

"It has been an extremely challenging first half of 2016 for the industry, with volatile stock markets and plunging oil prices," it said.

"Compounding to this situation, marine oil and gas companies are facing repercussions from the potential bankruptcy of major marine oil and gas companies. The current sentiment in the market is one of belt tightening, with demand in the offshore and marine to wane."

It added: "Given these obstacles in our operating environment, the group plans to streamline its core operations, which include amongst other, cutting costs and manpower and building up its businesses to ensure steady stream of recurring income to weather the storm."

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