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KS Energy posts wider Q2 net loss of S$59.8m on write-off of assets

OIL and gas services company KS Energy on Wednesday posted a bigger net loss for the second quarter, hit by a S$55 million write-off of assets under construction.

This came as KS Energy's drilling unit cancelled two newbuild contracts earlier this year, one of which was a newbuild contract for a second rig, KS Orient Star 2, with Cosco Shipyard. Construction was expected to cost S$26.8 million. 

In June, the drilling unit had also terminated its newbuild contract for the KS Java Star 3 rig with port machinery and heavy marine equipment manufacturer Shanghai Zhenhua Heavy Industries.

As a result, the company saw a net loss of S$59.8 million for the quarter ended June 30, against a net loss of S$11.9 million previously. 

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Loss per share stood at 4.32 Singapore cents, against 1.79 cents in the year-ago period. 

KS Energy, which remains on the Singapore Exchange's watch-list, pointed to recent contracts secured by the drilling unit and said it remains focused on "continuous cost-cutting efforts" and improving the performance of its existing businesses.

The group also recorded wider half-year net losses of S$73.1 million against S$29.5 million a year ago, translating to a loss per share of 7.14 Singapore cents, compared with 4.49 cents previously. 

KS Energy shares closed unchanged at S$0.011 on Wednesday before the results were announced.