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.
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.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
TikTok tells advertisers: ‘We are not backing down’
EV automakers get reprieve in US tax credit rules
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance
HSBC asked by US$890 billion investor group to set energy goal
BHP’s biggest rivals sit on the sidelines of Anglo M&A drama