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Dyna-Mac names new chief, sinks into the red for Q4

MAINBOARD-LISTED Dyna-Mac Holdings has appointed Lim Ah Cheng as its new chief executive and director, effective March 1.

He replaces founder, former executive chairman and chief executive Lim Tze Jong Desmond, who died on Oct 26, 2019. 

Prior to the appointment, Mr Lim Ah Cheng, 46, was executive director at Keppel Sea Scan Pte Ltd and Green Scan Pte Ltd. Before that, he was the general manager at Keppel Offshore & Marine's Offshore Technology Development, said a regulatory update on Feb 29. 

According to results released by Dyna-Mac on the same day, the group sank into the red with a net loss of S$24.2 million for its fourth quarter ended Dec 31, 2019, compared with a net profit of S$130,000 a year ago.

This came as other income tumbled, while other expenses increased, despite a jump in revenue, according to the results released by the offshore oil and gas contractor. 

Loss per share stood at 2.37 Singapore cents for the quarter, from an earnings per share of 0.01 cent a year ago.

Revenue for Q4 rose 73.1 per cent to S$29.1 million, from S$16.8 million a year ago due to higher project progress achieved during the quarter.

Other income fell 85.4 per cent to S$228,000, from S$1.6 million a year ago, due to the absence of impairment of property, plant and equipment written back for fiscal 2018. 

Meanwhile, other expenses increased to S$4.1 million, from S$600,000 the year before on fair value losses and net foreign exchange loss recognised during fiscal 2019. 

No dividend was declared for the full year, unchanged from a year ago.

For the full year ended Dec 31, the company posted a net loss of S$23.8 million, while revenue was down 15.2 per cent to S$97.8 million.

For the next 12 months, the group said the market environment is expected to remain challenging due to global economic risks as well as the impact of the Covid-19 outbreak.

This is despite the group experiencing an increase in enquiries from long-standing customers and new potential customers.

Dyna-Mac shares were trading flat at 12.5 Singapore cents as at 10.49am on Monday.