NSL sees loss for half year on oil price collapse, Covid-19 containment measures

MAINBOARD-LISTED NSL sees itself continuing to spill red ink for the half year to June, as the collapse of oil prices and the measures to stem the spread of the novel coronavirus weigh on its financial results.

The company's units Eastern Pretech, producer of pre-cast concrete components; and NSL Chemicals, manufacturer and trader of refractory materials and road stones, had initially been allowed to operate as usual at reduced manpower capacity when the "circuit breaker" was implemented on April 7 in Singapore.

But after circuit breaker measures were tightened, these two subsidiaries had to stop work from April 27 until June 1, said the company in a regulatory filing on May 17.

NSL OilChem Waste Management, which is in the treatment and disposal of waste, has not had its operations disrupted, though.

Over in Malaysia, operations of precast business had resumed at 100 per cent of its overall manpower capacity on April 30.

Precast concrete products for NSL's on-going projects in Dubai had, since the beginning of April, operated at 50 per cent of its overall plant capacity due to movement restriction and social distancing measures. Also, some of its customers' sites have closed temporarily.

"The group is expected to remain in a loss position in its half-year results ending June 30, 2020 due to the adverse business impact of the measures taken by Singapore, Malaysia, and Dubai to contain the Covid-19 pandemic; and the collapse of the oil price which has a significant adverse impact on the performance of the environmental services division," said NSL in the filing.

The counter closed flat at S$0.765 on May 15.