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Dyna-Mac warns of Q2 loss after 'significant disruption' to projects amid pandemic
DYNA-MAC Holdings is set to report a net loss for the second quarter ended June 30, based on a preliminary review of its unaudited results.
In its profit guidance issued on Thursday night, the mainboard-listed offshore oil and gas contractor added that for the half year ended June 30, the group is expected to see a cumulative loss.
Singapore's "circuit-breaker" measures which began in April this year - particularly the movement restrictions disallowing migrant workers from leaving their dormitories for work - resulted in the Dyna-Mac group standing down and suspending production activities.
This led to a "significant disruption" in project executions, and the measures "severely" affected the group's operations, despite Dyna-Mac receiving government grants which partially mitigated the impact, it said.
Further details of the financial performance will be disclosed when results are released on or before Aug 14.
Dyna-Mac separately announced on Thursday that it has secured fabrication projects from repeat customers for a total provisional sum of S$37.4 million.
The projects will commence in the third quarter of 2020, and are expected to be completed by the first quarter of 2021.
The contracts are for the fabrication of pipe spools and the construction of topside modules for floating production storage offloading vessels.
Dyna-Mac added that the orders are expected to have no material impact on its earnings per share and net tangible assets for the financial year ending Dec 31, 2020.
Meanwhile, the company also announced that it has voluntarily closed a dormant wholly-owned subsidiary called Dyna-Mac Marine Engineering (DMME) in Shanghai, China.
The dissolution is not expected to have a material impact on the group's earnings per share and/or net tangible assets per share for this year.
Dyna-Mac shares were trading 0.3 Singapore cents or 2.9 per cent lower to 10.5 cents as at 10.23am on Friday.