MAINBOARD-LISTED Technics Oil & Gas has posted three straight years of pre-tax losses before exceptionals, the oil and gas contractor announced on Tuesday evening.
The losses trigger one of two conditions for potential delisting. However, Technics' market capitalisation on Tuesday was S$152.1 million, above the S$40 million 120-day average threshold that would activate the second condition.
If both conditions are met, Technics could be placed on the watch-list. Companies that remain on the watch-list for two years will be delisted.
There are three ways to exit the watch-list. A company that can raise its 120-day average daily market cap above S$40 million needs only to post a profit to cure its status. Otherwise, the company must either record a cumulative pre-tax profit of at least S$7.5 million over three years with at least S$1 million in profit for each of those years or report at least S$10 million of pre-tax profit for the last one or two years.
Technics posted a S$9.5 million pre-tax profit in the year ended Sept 30, 2015, but that was after recognising a S$28.8 million profit from the sale and leaseback of property.