Eyes on O&M players' Q4 impairment charges
Swire Pacific Offshore move prompts renewed talk on whether S'pore-listed firms will make decisive write-downs
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THE move by leading offshore support vessel (OSV) owner-operator Swire Pacific Offshore (SPO) to take on significant impairment charges has sparked renewed speculation over whether Singapore-listed offshore and marine players may follow suit and write down the book values of their assets once and for all.
In arriving at the estimated HK$2.31 billion (S$424.6 million) impairment charges on the carrying value of its fleet, SPO cited "a longer period for and a slower rate of recovery" than previously anticipated. Analysts concurred that the protracted downturn should have compelled Singapore-listed O&M counters to do the same but this is caveated on pertinent financial considerations.
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