Lower sales in the energy sector hit fourth-quarter earnings at CosmoSteel Holdings.
Net profit for the three months fell 49.3 per cent to $1 million compared with the same period last year, while revenue dropped 41.6 per cent to $24.2 million. Earnings per share came in at 0.37 cents, down from 0.76 cents last year, while net asset value per ordinary share was 42.23 cents as at Sept 30, down from 40.56 cents as at Sept 30 last year.
The group said it expects generation of revenue to "continue to remain challenging" in the weak oil market. There would likely be fewer projects available in the market, it added.
"Profit margin is expected to continue to come under pressure from the intensifying competitive conditions locally and globally," it said in a statement.
Chief executiveOng Chin Sum added: "We believe the solid track record and strong customer relationships we have built over the last three decades, combined with the significantly enhanced global footprint, customer base and product range from our strategic partner Hanwa, will hold us in good stead as we ride out this industry downcycle."
HTL International Holdings
HTL International Holdings may be taken over by a Chinese firm.
BEM Holdings, which is HTL International's controlling shareholder, said a unit of Guangdong Yihua Timber Industry may acquire all its shares by way of a scheme of arrangement.The company would then delist HTL from the Singapore Exchange.
HTL said the possible acquisition needs the approval of Yihua and HTL shareholders, and the regulators here and in China.
The price would be subject to negotiation.
Sembcorp Marine's wholly owned subsidiary, Sembcorp Marine Rigs and Floaters, has secured a contract to design and build a floating, storage and offloading vessel for Modec Offshore Production Systems (Singapore). The vessel, which is due for delivery in the first quarter of 2018, will be deployed at Maersk Oil's Culzean field, the largest oil and gas field to have been discovered in the North Sea for a decade.
The contract is not expected to have any material impact on Sembmarine's net tangible assets and earnings per share this financial year.