KIM Heng Offshore & Marine Holdings, which listed on Catalist in January this year, has hit a profit snag in the second quarter. In a profit guidance yesterday following a preliminary review of its financial results, the group said that it was expecting earnings for the three months ended June 30 to be lower than those for the year-ago corresponding period.

"This is mainly due to a higher proportion of lower-margin projects undertaken in 2Q 2014 and the delay in arrival of certain rigs," said Kim Heng. The company added that it was finalising its Q2 financial results and further details of its performance would be given when the results are announced on or before Aug 14.

Kim Heng raised its profile through its flotation at 25 cents per share, with a starting market capitalisation of S$177.5 million. It was a popular initial public offering, with the issue 5.8 times subscribed and the stock jumping as much as 28 per cent on trading debut.