Mencast sinks deeper into red with S$7.1m loss in Q3

Marine and oil and gas industry services provider Mencast Holdings sank further into the red for its third quarter ended September 30, 2017.

Net loss attributable to shareholders was S$7.1 million, from a loss of S$2.8 million a year ago. Revenue shrank 17 per cent to S$12.7 million.

"The continued weakness in the outlook and business conditions for the oil and gas industry has created a challenging business environment for the group," Mencast said.

"We do not foresee the operating environment for our businesses improving significantly in the next 12 months. The demand for our repair and maintenance works and related goods and services remains weak and price-sensitive, and the credit tightening in the industry continue to be a challenge for many industry players."

It said it will continue to actively explore diversification opportunities within and outside Singapore, while managing costs and cash flows prudently.

Its order book at end-September was S$10.4 million.

Mencast last traded at S$0.137, down S$0.001 or 0.7 per cent.

Net asset value at end-September was 23.36 Singapore cents per share, down from 27.36 Singapore cents as at end-December 2016.