Teho International remained mired in red ink in its last financial year, after heavy impairment charges for its offshore and marine and property segments hammered earnings.
The Catalist-listed firm reported a net loss of $23.8 million for the 12 months to June 30, a widening of the $7.6 million loss in the previous year. Full-year revenue dropped 6.9 per cent to $57.4 million.
The bulk of the loss came from the $2.3 million in goodwill impairment charges for the marine, offshore oil and gas segment, while another $16.4 million was incurred for the property division.
"Due to negative impact of crude oil prices on the outlook of the offshore oil and gas industry, the projected cash flows to be derived from the subsidiaries in the segment was affected unfavourably, thus resulting in the impairment loss," Teho said when announcing its results after market closed yesterday.
Teho is the latest in a string of oil- and gas-related companies showing signs of stress in recent months.
With crude oil prices staying low, upstream producers have been hit hard and are forced to cut expenses and cancel rig orders.
AT A GLANCE
$57.4 million (-6.9%)
$23.8 million (+212.6%)
NET ASSET VALUE:
17.36 cents a share (-35%)
For Teho, its offshore and marine segment still showed resilience, chief executive Lim See Hoe said. Revenue in the sector came in at $52.3 million, down 5.9 per cent year on year.
Aside from headwinds in the oil and gas sector, Teho also faced challenges in its property business.
In Phnom Penh, Cambodia, the group and its joint-venture partner have put The Bay's residential development phase on hold in response to a condominium oversupply that Teho expects to persist through to 2018.
Full-year loss per share was 10.21 cents, compared with the 3.54-cent loss a year ago. Net asset value was 17.36 cents a share as at June 30, down from 26.71 cents a year earlier.
Teho shares last closed at five cents on Thursday after sliding 16.67 per cent.