CH Offshore Customer Debts Weighed Heavily in FY 2013

MarineLink.com
Tuesday, October 22, 2013
CH Offshore vessel: Image courtesy of the owners

In its financial year ended 30 June 2013 report Singapore's CH Offshore had to make a full allowance for doubtful trade receivables of US$43.95 million as the debts had been long overdue and payment from the client was not forthcoming. Nevertheless a dividend was declared and chairman, Tan Pong Tyea expressed optimism for the future and noted as follows:

"The financial year ended 30 June 2013 (“FY13”) marked the 10th year since CH Offshore Ltd (the “Company”) became a public limited company on 28 February 2003. Over the last 10 years, the CH Offshore Group (the “Group”) like all other organisations had to ride through global financial woes and economic downturns. Although the going was tough, the Group remained profitable over the years since 2003 till recently.

At the end of FY13, the Group had to make a full allowance for doubtful trade receivables of US$43.95 million as the debts had been long overdue and payment from the client was not forthcoming. Although the allowance of the doubtful trade receivables was made in full, we will continue to ensure no effort is spared to recover this outstanding debt. In the event that we are able to recover the balance, adjustments will be made to the allowance for doubtful trade receivables in the subsequent financial year.

As a result of the full allowance made for doubtful trade receivables, the Group made a loss after tax of US$7.108 million for FY13. This is the first time in 10 years the Group has suffered a loss since the Company became a public limited company. If not for this allowance made, FY13 would have been another profitable year for the Group. Due to the lower operating costs, gross profit after direct depreciation increased 12.1% to US$32.525 million from US$29.025 million for FY12

Dividend
Despite suffering a loss after tax of US$7.108 million for FY13, the directors have decided to recommend a first and final tax-exempt dividend of 1.50 SGD cents per ordinary share which will amount to approximately S$10.576 million (equivalent to US$8.374 million).

To arrive at this decision, the directors have taken into consideration the strength of the Group’s financial position as at 30 June 2013. The Group had accumulated profits of US$170.611 million and surplus cash generated from operations of US$14.404 million during FY13."
 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

Offshore

Ezra Bags $70m in Offshore Contracts

Ezra Holdings Limited, a leading contractor and provider of integrated offshore solutions to the oil and gas industry, today announced that the Group’s Subsea Services division,

Rederij Groen Takes Delivery of 7-Waves

Rederij Groen’s entire SRSV fleet built by Damen Maaskant Shipyards Stellendam. Dutch offshore services company Rederij Groen has taken delivery of the 7-Waves,

New Oil Field Found in British North Sea

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f

Finance

Areva-Siemens Raises Claim Over Finnish Reactor Delays

The French-German consortium Areva-Siemens , the supplier of Finland's much-delayed Olkiluoto-3 nuclear reactor, has increased its claim against Finnish utility Teollisuuden Voima (TVO),

Ezra Bags $70m in Offshore Contracts

Ezra Holdings Limited, a leading contractor and provider of integrated offshore solutions to the oil and gas industry, today announced that the Group’s Subsea Services division,

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2935 sec (3 req/sec)