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Viking posts S$9.4m loss on impairment amid weak order climate
VIKING Offshore & Marine fell into a net loss of S$9.4 million, or 1.16 Singapore cents per share, in financial year 2015 after incurring an impairment on goodwill due to a weak order book.
The oil and gas contractor had posted a profit of S$1 million in 2014.
Revenue actually increased by 7 per cent to S$84.5 million on the strength of its asset chartering business. Offshore and marine turnover remained unchanged year on year.
Despite a 2 per cent increase in gross profit, to S$23.9 million, the company fell into an operating pre-tax loss of S$9.9 million as other operating expenses grew to S$14.2 million from a year-ago S$2.7 million.
The increase in other operating expenses mostly came from a one-time S$10.3 million impairment of the goodwill recorded in the balance sheet since the acquisition of the heating, ventilation, air-conditioning and refrigeration systems business in year 2010. That impairment was due to an expected weaker order book under the current tough industry climate.
Viking said the offshore and marine industry is expected to "remain challenging". The company has seen and expects delays to existing projects and limited opportunities to pick up new contracts.