Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.
Find out more at btsub.sg/promo
TWO Singapore Exchange-listed firms, KS Energy and Global Invacom, on Wednesday said they expect to report net losses this earnings season.
KS Energy said that a net loss is expected for the fourth quarter ended Dec 31, 2015, as well as "significant decline in the net result for the full year" ended the same date.
"With reference to disclosures given during the first three quarters in 2015 regarding the challenging operating environment and weak market demand, the results for Q4 2015 and FY2015 will be negatively impacted," said KS Energy, which added that its unaudited financial results will be announced around the end of February.
Global Invacom, meanwhile, said that it expects to report an overall net loss between US$1 million and US$2 million for FY2015.
This is largely due to a delay in sales to three main customers, who had either de-stocked or altered their procurement procedures during H1 2015.
Gross margins were also affected in part by the "re-classification of export taxes for certain products that the group is contesting", as well as the weakening Malaysian ringgit against the US dollar.
The overall net loss for FY2015 comes despite an expected improved performance for H2 2015, versus the previous six months.
"This improvement is predominantly due to the resumption of sales to three main customers resulting in an increase in revenue and margin, excluding the acquisition and restructuring costs of Skyware," said Global Invacom.
Shareholders in both companies are advised to exercise caution when dealing with their shares.