EMS Energy to return Tuas South site to JTC after racking up arrears

CATALIST-LISTED offshore and marine company EMS Energy will return its Tuas South premises to industrial landlord JTC Corp after running up more than S$940,000 in arrears.

The board has decided that the best thing to do is return the premises to state-owned JTC to avoid chalking up more rental charges, it said on Monday. It plans to do so "as soon as possible and negotiate for a repayment scheme on the rental arrears".

In a letter of demand dated April 17, JTC also told EMS Energy to fulfil the investment criteria in the lease agreement for the Tuas South Street 15 site, the board noted. But it has been unable to do so since construction stopped in 2016 and no joint developers emerged.

As there has been no activity on the site and the company has no plans for it, returning the premises will not have a material impact on group operations, the board said.

Still, it added, the return would have a material impact on net tangible assets and earnings per share for the year to Dec 31, as the cost of construction would likely be written off.

Separately, EMS Energy has previously disclosed that it is in talks to give investors a 96.1 per cent stake in the company in exchange for a Vietnamese shipyard. Under a binding memorandum of understanding, they have until May 15 to ink a sale and purchase agreement.