Company Briefs: AusGroup


AusGroup yesterday warned that it expects a net loss for the fourth quarter which ended June 30.

This is due to the continued delay in the commercialisation of its port and marine businesses, which also saw substantial cost reductions.

Further reductions in capital expenditure related to the exploration and production activities in the oil and gas industry have also negatively impacted its fabrication and manufacturing businesses in Singapore.

"Due to the prolonged adverse business environment in the above-mentioned business segments, the group is likely to further impair certain assets, and has decided to cease its Singapore fabrication and manufacturing businesses and sell the related assets," AusGroup said.

It added that its major businesses, AGC Industries and MAS, are profitable.

Santak Holdings

Santak Holdings has issued a profit warning, saying that it expects to report a significantly higher loss this year, compared with last year.

This is mainly due to a significantly lower turnover as well as losses incurred by the group's Wuxi operations, particularly due to a significant drop in revenue accompanied by substantial selling price erosions.

This was most evident in the second half of its financial year, which ended on June 30.

It incurred substantial fixed operating overheads that came from two new factory facilities set up in the last financial year for the recent precision machined component projects. The losses are also due to ongoing efforts to restructure the group's businesses.

Ley Choon Group Holdings

Mainboard-listed Ley Choon Group Holdings announced yesterday that it had clinched a $35.3 million contract from national water agency PUB.

The contract involves the laying and installation of a 2km-long potable water transmission steel pipeline from Murnane Service Reservoir in Jalan Kampong Chantek to the Pan-Island Expressway/Rifle Range Road.

The new pipeline will improve the flow and pressure of water supply for residents.

With this order, the group's outstanding orders based on secured contracts rose to $172 million. The group is also divesting its non-core assets to strengthen its financial position.

A version of this article appeared in the print edition of The Straits Times on August 24, 2016, with the headline 'Company Briefs'. Print Edition | Subscribe