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EMS Energy narrows loss in Q2

EMS Energy posted a net loss of S$2 million for the second quarter, due in part to higher gross profit that helped to lift it from a net loss of S$5.6 million a year ago.

For the three months ended Jun 30, 2017, loss per share stood at 0.45 Singapore cent. Loss per share for Q2 2016 was 1.24 Singapore cents.

In the first half of the 2017 fiscal year and H1 2016, EMS Energy's net loss was S$2.9 million.

The group saw a 9.1 per cent increase in revenue in Q2 2017 to S$3.3 million compared to the year before, due to project billings in the said quarter by Koastal Industries Pte Ltd (KIPL) for the existing project in Vietnam which started prior to the cessation of KIPL operations in September 2016.

Revenue for H1 2017 dropped 63 per cent to S$5.9 million, compared to H1 2016.

The company is currently in the midst of implementing the scheme of arrangement after the scheme was sanctioned by the High Court on Sep 8 this year.

EMS Energy said that since Aug 1, 2016 and up to Dec 15, announcements have been made in relation to the scheme of arrangement (SOA) of the company, and of its subsidiary, EMS Energy Solutions Pte Ltd, as well as the liquidation of KIPL.

In 2015, EMS Energy said it planned to merge with Koastal Group in a cash-and-scrip deal valued at S$150 million to diversify its earnings stream. KIPL was a controlling shareholder of EMS.

It added on Friday that upon the successful completion of the SOA, the group's financial position will be "substantially improved" with the debt-to-equity conversion.

Last month, EMS Energy announced that it had been granted further time extension by the Singapore Exchange to announce its results. It was given a one-month extension till Nov 15 this year to announce its first-quarter results, which it managed to do, and till Dec 15 this year to announce its second-quarter results.