KS Energy narrows Q1 net loss to S$16.87m, flags going concern issues

KS Energy saw its first-quarter net loss narrowed by 28.9 per cent to S$16.87 million.

Loss per share was 3.27 Singapore cents compared to 4.6 Singapore cents for the year-ago period.

Revenue for the quarter ended March 31, 2017, fell 35 per cent to S$5.76 million.

KS Energy said its Q1 results were prepared on "a going concern basis". The validity of this is premised on the continuing availability of credit facilities to the group for at least 12 months from the reporting date and adequate cash flows to be generated from its operating activities, asset divestments or other financing plans.

The group is in negotiations with bondholders and a shareholder to restructure some of its debts by rolling over the repayment of a sum in excess of S$74.86 million owed under a convertible bond issue and shareholder loan to more than 12 months from the reporting date.

It also plans to seek the necessary financing for capital commitments of S$236.4 million as at March 31, 2017, due to an asset scheduled for delivery later this year.

Its net gearing rose to 6.7 times as at March 31, 2017, up from 4.86 times as at Dec 31, 2016.