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AusGroup to cease Singapore fabrication and manufacturing businesses
AUSGROUP, in a profit warning issued after Tuesday trading hours through a Singapore Exchange (SGX) filing, said it has decided to cease its Singapore fabrication and manufacturing businesses.
The Singapore-listed said it expects to report a net loss for the fourth quarter ended June 30, 2016, due to "prolonged adverse business environment" impacting certain business segments.
Further reductions in capital expenditure in the upstream oil and gas industry exerted pressure on its Singapore fabrication and manufacturing businesses.
Results for Q4 were also significantly impacted by the continued delay in the commercialisation of its port and marine business.
Under an adverse environment, AusGroup said it is likely to further impair certain assets. A decision was made "to cease its Singapore fabrication and manufacturing businesses and sell the related assets, which will result in a further impairment of the carrying value of these assets", it said in the SGX filing.
The listed group maintained that its two other business units, Australia-based oilfield services provider AGC Industries and rope access specialist MAS, "are both trading profitably".
The group's operations in Singapore span over 30,000 square metres, comprising a large enclosed fabrication facility, machine shop and staging and storage areas with water access, according to its official website.