Auditors flag concerns over KS Energy's financial position

Published Wed, Mar 30, 2016 · 02:59 PM

THE auditors of KS Energy have raised concerns over the ability of the firm to continue as a "going concern".

The energy services provider had incurred a net loss of S$260.4 million in the 2015 financial year, noted KPMG.

At the group level, its current liabilities exceeded current assets by S$349.9 million, mainly due to a reclassification of certain bank loans to "current liabilities" as a result of breaches in certain loan covenants.

KS Energy management, however, highlighted a waiver received from a lender on the covenant breaches, which defers the repayment date of S$226.2 million in bank loans, and the availability of S$81.6 million in undrawn credit facilities.

It also believes that the firm will be able to generate "sufficient cashflows" from operating activities, asset divestment plans and other financing plans to repay its debt obligations, though it acknowledges that there are uncertainties accompanying these plans.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to

Companies & Markets


Get the latest coverage and full access to all BT premium content.


Browse corporate subscription here