TEHO H1 net loss narrows to about S$261,000; cites uncertain conditions ahead

OFFSHORE marine and engineering group TEHO International stayed in the red for the half year ended Dec 31, 2016 with a net loss of S$261,424, after incurring a net loss of S$3.04 million a year ago.

Revenue slipped 2.1 per cent to S$26.55 million, largely due to contractions in its two segments of "Marine & Offshore" and "Property Development", which includes property agency and international marketing activities.

"The group expects its Marine & Offshore Segment to operate in a challenged and uncertain environment in the coming year. However, even as the industry continues to work its way out of the doldrums," TEHO said on Friday.

"Apart from cost control measures, the group is also closely monitoring its exposure to credit risk and maintaining an optimal amount of inventory."

Group chairman and CEO Lim See Hoe said the property development segment is not out of the woods yet but the group is taking a long-term view of this business.

TEHO has a development arm and owns estate agency business ECG Property Services.

The group had in January obtained a certificate of statutory completion for its Urban Heritage development project. The construction of Elite Residence is also scheduled for completion by the end of 2017.

Over in Cambodia, the residential development phase of The Bay project has been put on hold and under review by the group and the joint venture partners.