PEC issues profit warning on outstanding payment of $19 million from Jurong Aromatics

SINGAPORE - Specialist engineering group PEC has warned that it may log a net loss for the financial year of 2015, after assessing the impact of its client, Jurong Aromatics Corporation, being pushed into receivership.

The mainboard-listed company said in a filing to the Singapore Exchange on Wednesday (Oct 7), after the market closed, that about S$19 million due from JAC remains outstanding.

"The company is currently in discussions with the receivers of JAC with regard to the payment and depending on the outcome of such discussions, the group may report a net loss for FY2015 if the group is required to make any specific provision of doubtful debts in its FY2015 accounts," it said.

JAC, which operates a large petrochemical plant in Singapore, went into receivership over debt woes last week.

It has been plagued by mounting debt as operations at the plant stalled in December last year, amid slowing demand and weakness in prices of oil and related chemical products.