SBI Offshore warns of H1 loss amid tough market conditions

SBI Offshore expects to report a half-year loss for the six months ended June 30 due to lower revenue amid challenging market conditions, the oil and gas contractor announced on Friday after the market closed.

SBI Offshore, which has diversified into the solar energy sector since 2015, said it will disclose more details when it announces its results in the week of Aug 8.

The company also posted a loss of US$4.0 million in 2015. When the full-year results were announced in February 2016, SBI Offshore said scaled-back spending by oil majors amid margin pressures and order deferrals have created a "challenging" backdrop in the industry. The company is hoping to secure solar energy projects as an additional revenue driver.

SBI Offshore is currently facing a shareholder challenge to its existing directors. Minority shareholders Hui Choon Ho, Tan Woo Thian and Ong Nai Pew have requisitioned an extraordinary general meeting to appoint Mr Hui, Mr Ong and individuals Lau Yoke Mun and Geoffrey Yeoh as directors of SBI Offshore's board. The requisitioning shareholders are also seeking to remove SBI Offshore chief executive Chan Lai Thong from the board.

SBI Offshore said on July 22 that its nominating committee will meet to discuss and review the suitability of the proposed directors and whether to recommend the appointment of the proposed directors to the board for approval. The board will then consider whether to convene the shareholders' meeting. No further updates have been announced so far.