Doubtful trade receivables plunge CH Offshore into full-year loss

CH Offshore, which charters out vessels, has fallen into the red, with a net loss of US$7.1 million (S$9 million) compared to a profit of US$33.4 million.

Revenue for the year ended June 30 fell by 7.2 per cent to US$47.8 million.

The group was hurt by a significant amount of doubtful trade receivables. It provided US$44 million in allowance for doubtful trade receivables.

CH Offshore had announced this outstanding debts in its first half and third quarter announcements and that it was taking appropriate actions to recover the debts.

While efforts are still on-going, the group deemed it prudent to make an allowance for doubtful trade receivables for the full year as no further payments were received from the client since October 2012 and both the vessels that were deployed have completed their respective contracts in January this year.

The group did not make anallowance last year as the client did not dispute the invoices and had continued to make payment.

Loss per share amounted to 1.01 US cents, reversing from earnings of 4.74 US cents previously while net asset value per share fell by 4.24 US cents to 32.05 US cents.

A final dividend of 1.5 cents a share was proposed.