RH Petrogas' auditor flags cashflow concern

RH PETROGAS on Tuesday said its auditor has included an emphasis of matter over its audited financial statements for the fiscal year ended Dec 31, 2016.

The oil-and-gas firm's auditor, Ernst & Young, said while the group has incurred a net loss of US$8.94 million for the full year, its current and total liabilities exceeded its current and total assets by US$25.3 million and US$36.1 million, respectively.

"These factors indicate the existence of a material uncertainty which may cast significant doubt about the group's ability to continue as going concern."

The group has made losses for three consecutive years. Its market value stands at S$75.6 million. Listed companies are only placed on the watchlist if its average daily market value is less than S$40 million over the last six months, on top of posting three years of pre-tax losses.