Emas Offshore sinks further into the red for H2 2017, FY2017

Singapore

THE Oslo Stock Exchange had notified Emas Offshore that it had resolved to uphold its resolution for the delisting of the company.

The case has subsequently been submitted to its appeals committee to handle, and the company will be given the opportunity to provide any further objections and comments before the appeals committee decides.

Emas Offshore also released its H2 2017 and FY 2017 financial statements ended Aug 31, 2017.

The offshore oil and gas services provider posted a net loss of US$687.5 million after tax for its second half FY2017 results, deepening from US$391.5 million for the same period a year ago. Revenue for the six months went down 36 per cent to US$56 million as it continued to be negatively impacted by weak market environment resulting in low utilisation and charter rates.

No dividends were declared during the current and previous financial years.

Operating cash flows before working capital movements stood at US$9.9 million for H2 2017, reversing from a negative US$9.6 million a year ago.

For the full year, Emas Offshore saw a net loss of US$705.7 million after tax, widening from US$535.2 million, previously.

Revenue for FY2017 went down 19 per cent to US$136.5 million. Loss per share for FY2017 was 1.61 US cents, widening from 1.22 US cents earlier.

The group's total assets amounted to US$466.5 million as at Aug 31, 2017, down from US$1.09 billion as at Aug 31, 2016. However, liabilities increased by 8 per cent to US$1.13 billion as at Aug 31, 2017, due mainly to recognition of payable due to former subsidiary Lewek Champion Shipping, which is in compulsory liquidation and increase in provision for onerous contracts.

The embattled offshore support vessel (OSV) arm of Ezra Holdings saw its total equity in deficit position as at Aug 31, 2017.

In its outlook, Emas Offshore said that the market environment in the offshore oil and gas industry is expected to remain challenging. Oil prices have recovered slightly and averaged above US$50, but it has not reached an extent that will result in a significant increase in activities in the offshore oil and gas sector while the situation of over-supply of offshore vessels continues to persist, said Emas Offshore. These factors are expected to have a negative impact on the group's operations and financial performance.

As announced previously, the company and certain of its subsidiaries are undergoing restructuring. Emas Offshore said that it will update the market when there are significant developments.