OIL and gas engineering company IEV Holdings said it has started due diligence for an acquisition as part of a diversification into healthcare and wellness, as it posted second-quarter losses on Wednesday. 

The group is "developing its diversification plan in the healthcare and wellness sector and has started the due diligence process for a possible acquisition as per the announcement of 25 June 2019," Catalist-listed IEV said in its outlook statement. Further announcements will be made as and when there are material developments, the group added. 

But on the engineering front, IEV is "cautiously optimistic" about the recovery of its oil and gas business, citing a global slowdown in demand growth and higher global oil inventories. 

IEV recorded a second-quarter net loss from continuing operations of RM1.9 million (S$629,000), against net losses of RM2.5 million a year ago, faced with higher expenses, losses from its associates and discontinued operations. 

That translated to a loss per share of 0.57 Malaysian sen, compared with 0.89 sen previously. 

For the six months to June 30, IEV also saw a net loss from continuing operations of RM3.6 million, compared with RM4.5 million in losses in the preceding year. 

Loss per share for the period came in at 1.19 Malaysian sen, compared with 1.57 sen previously. 

As at June 30, the group had negative net asset value of 2.3 Malaysian sen per share, versus 4.3 sen a year ago.