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NauticAWT posts US$1.8m loss for H1; cites new businesses, IPO costs

OIL and gas contractor NauticAWT fell into a net loss of US$1.8 million for the first half of this year, dragged down by recent acquisition of businesses from AWT International and listing costs.

NauticAWT, which warned of a loss on Sept 4, posted a net profit of US$1.7 million in the year-ago period. On a per-share basis, the company had a net loss of 1.15 US cents in the six months to June, from a net profit of 1.06 US cents per share a year earlier.

Revenue for the first half increased by 56.7 per cent to US$14 million as the AWT businesses, which were acquired in November 2014, contributed US$6.9 million. Revenue from NauticAWT's existing businesses, however, fell by about 20 per cent to US$7 million.

Administrative expenses jumped about threefold to US$6.1 million, of which US$2.4 million were incurred by the AWT businesses and US$1.1 million came from NauticAWT's July listing on the Catalist board of Singapore Exchange.

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NauticAWT said it has begun to restructure the AWT businesses, partly to cut costs. The acquired businesses will reduce its footprint in the subsurface and wells segment in Australia and focus on Asia and the Middle East. NauticAWT expects annual savings of about US$480,000, excluding one-off restructuring costs.

Looking ahead, NauticAWT expects a "very challenging" outlook. The company said it will market its expanded portfolio of services to existing clients and new markets as well as try to diversify its revenue base in the areas of mature field production enhancement and renewable energy.

NauticAWT shares last traded at 22 Singapore cents on Thursday.

Canaccord Genuity is the sponsor of the Catalist-listed company.