MAINBOARD-LISTED Dyna-Mac Holdings, which fabricates topside modules and structures for the offshore oil and gas industry, posted a smaller net loss of S$11.7 million for the fourth quarter ended Dec 31, 2020, compared with the S$24.1 million loss in the year-ago period.

Revenue rose 3.3 per cent to S$30.1 million in Q4 FY2020 from S$29.1 million in Q4 FY2019 - mainly due to higher project progress achieved, Dyna-Mac said in its results statement on Friday night.

On the other hand, cost of sales eased 13 per cent to S$38.3 million.

Other expenses shrank by 85.6 per cent to S$593,000. The expenses in Q4 FY2020 mainly arose from net foreign exchange loss of S$600,000. In contrast, the expenses in Q4 FY2019 were chiefly due to fair value losses on asset held for sale of S$3.9 million.

Other income climbed to S$2.9 million in Q4 FY2020 from S$228,000 in Q4 FY2019. "The other income in Q4 FY2020 comprised mainly income recognised from the government grants. In contrast, the other income in Q4 FY2019 mainly derived from sale of scrapped materials," Dyna-Mac said.

Loss per share eased to 1.14 Singapore cents in the latest quarter from 2.36 Singapore cents in the year-ago period.

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For full-year 2020, Dyna-Mac's net loss widened to S$58.4 million from a S$23.7 million loss in FY2019. Revenue slipped 14.1 per cent to S$84 million - largely on the back of slower progress of projects and a small order book. "There was no physical progress since end-April up to the beginning of September as the workers were kept in the dormitory," the group said.

Cost of sales increased 19.1 per cent to S$114.5 million.

Other income increased to S$7.2 million in FY2020 from S$1.1 million in FY20219.

However, administrative expenses rose 42.3 per cent to S$30.6 million. "The increase was mainly due to production salaries and related costs being reclassified from cost of sales during the production stand-down and suspension period, coupled with expected credit losses on trade and other receivables," Dyna-Mac said.

The counter closed 0.3 Singapore cent lower at 10.3 Singapore cents, on Friday.

No dividend was declared, unchanged from the previous year.

The group noted that the Covid-19 pandemic continues to have an adverse impact on its business.

The group said that while new fabrication projects it has secured are expected to maximise the utilisation of the group's yard facilities and provide sustained revenue streams up to Q2 2022, market conditions remain difficult and margins remain depressed. "In addition to higher labour costs, the group also faces challenges in ramping up its foreign worker headcount to meet its needs due to the Covid-19 containment measures imposed by the government."