SBI Offshore announces termination of US$24m contract

SBI Offshore has announced the termination of a US$24 million design and engineering contract on Thursday.

The contract was originally announced on Aug 19, 2014, between SBI O&M Pte Ltd, a wholly-owned subsidiary of SBI Offshore Limited, and a consortium of six Middle East-Chinese parties. It was to provide design and engineering services for a jack-up drilling rig that can operate in water depths of up to 110 metres.

SBI Offshore, which specialises in drilling products and services for the marine and offshore industry, said it received the notice of request for termination in view of the downturn in the offshore and marine industry, due primarily to the sharp fall in oil prices.

On the same day, the company also announced a 50 per cent dip in full year revenue to US$7.1 million for FY2015. This is down from US$14.1 million in FY2014.

For the same period, it swung to a net loss of US$4 million, from a net profit of US$610,000.

Meanwhile, basic loss per share came to 1.62 US cents in FY2015, compared to FY2014's earnings per share of 0.31 US cents. No dividend was declared.