SINGAPORE - Both Seatrium and satellite communications equipment provider Global Invacom on April 9 filed notice of three consecutive years of losses based on their audited full-year consolidated accounts.

Global Invacom highlighted that its six-month average daily market capitalisation as at April 8 was $13.7 million. This is below the $40 million requirement to avoid being placed on the Singapore Exchange (SGX) watch list. Seatrium said its latest six-month average daily market capitalisation was $7.04 billion.

According to rules under SGX’s listing manual, mainboard-listed companies will be placed on the watch list if they record pre-tax losses for the three latest consecutive financial years, and if they fail to maintain an average daily market cap of at least $40 million over the last six months.

Watch-listed companies must take measures to satisfy these financial requirements within 36 months from the date they are placed on the list. Otherwise, they will be delisted from SGX or have their trading suspended with a view to delisting.

SGX conducts quarterly reviews to identify issuers to be included on the watch list. These take place on the first market day of March, June, September and December.

Both companies noted that they will make an immediate announcement should they be notified by SGX that they will be placed on the watch list.

In Seatrium’s latest financials released on Feb 26, its second-half net loss widened to $1.7 billion from $118.3 million in the year-ago period. Loss per share (LPS) for the period stood at 2.46 cents, as opposed to LPS of 0.38 cent in the second half of financial year 2022.

For financial year 2023, Seatrium’s net loss stood at $1.9 billion, compared with a loss of $261.1 million the prior year, with LPS at 3.12 cents versus 0.83 cent. Its revenue for the year was $7.3 billion, compared with $1.9 billion in financial year 2022.

Global Invacom posted a narrowed net loss of US$963,000 (S$1.3 million) for financial year 2023, versus a net loss of US$15.5 million in financial year 2022. This translated to LPS of 0.35 US cent, as opposed to the prior year’s 5.72 US cents. The group attributed its narrower net loss to cost-saving measures which had been in place since the third quarter of financial year 2022, despite a 11.5 per cent decline in revenue.

On April 9, Seatrium closed trading 0.1 cent higher at 8.6 cents, while Global Invacom was flat at 5.6 cents. THE BUSINESS TIMES