CH Offshore files notice of 3 years of consecutive losses

VESSEL chartering firm CH Offshore filed a notice on Monday of three years of consecutive losses.

According to the its unaudited financial statement for the financial year ended Dec 31, 2019, it recorded a loss after income tax of US$14.06 million for FY2019.

The mainboard-listed firm said the losses were mainly due to losses from an associate company and a provision for brokers' commission following the result of an arbitration proceeding.

In August 2019, a claim of US$3.7 million was made against CH Offshore, a subsidiary of oilfield services provider Baker Technology, following an arbitration brought about by three ship brokers for unpaid brokers' commissions and damages.

The final amount due to the claimants will be determined following the service of further submissions to the tribunal, the company said.

Under listing rules on the Singapore Exchange (SGX), mainboard-listed companies will be placed on the watch list under the financial entry criteria if they record pre-tax losses for the three most recently completed consecutive financial years and also fail to maintain an average daily market cap of at least S$40 million over the last six months.

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CH Offshore said its latest six-month average daily market capitalisation as at Feb 17, 2020 is S$39.9 million.

The company said it will make an immediate announcement should it be notified by SGX that it will be placed on the watch list.

CH Offshore last traded at S$0.048 on March 6.