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SBI Offshore expects H1 loss, with no recorded revenue

OIL AND gas solutions provider SBI Offshore has advised shareholders that it did not record any revenue and expects to report a loss for the first financial half-year ended June 30, having reviewed its preliminary unaudited financial results.

In profit guidance issued on Tuesday after the market closed, SBI Offshore said: "This is primarily due to the challenging economic conditions in HY2018 and it will take some time before sustained new orders occur."

The half-year loss has narrowed from the year-before period, due to an increase in other income as well as substantially reduced staff costs. However, this was partly offset by a higher foreign exchange loss, with the strengthening of the US dollar against the Singapore dollar.

While oil prices have risen substantially in recent months, it remains to be seen whether this will translate into a sustainable increase in spending on new projects by oil majors and companies across the entire oil and gas value chain, said SBI Offshore.

It added that while it "remains vigilant to positive developments in the oil and gas space and has recently responded to several requests for quotations in this segment", it will also continue actively exploring opportunities in other industries. "Notwithstanding the challenging and uncertain market conditions, the Group has a sound balance sheet to pursue such opportunities," it said.

Further details of the group's financial performance will come when the company finalises and announces its unaudited financial results for HY2018 on or before Aug 14. The group advised shareholders to exercise caution when dealing in its shares.