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

People & Company News

NASSCO Opens New Facility for Naval Repair

General Dynamics NASSCO opened a new location yesterday in Bremerton, Wash. to support the company’s recently-awarded contract to repair and maintain U.S. Navy

Obama Urged to Help Resolve Port Negotiations

In a letter today to President Barack Obama, the American Association of Port Authorities (AAPA) urged the president to take the necessary steps to assign federal

USCG Commandant to Address PVA Convention

Commandant of the U.S. Coast Guard Admiral Paul F. Zukunft will attend the PVA Annual Convention at MariTrends 2015 in Long Beach, Calif. and deliver a keynote

Offshore

FPSO Trio Receives Side Shell Protection

SPS Overlay has yet again been used for side impact protection on three FPSOs for a major player in the offshore industry. The work was carried out at Enseada do Paraguaçu S.

Vard Wins Farstad's OSCV Contract

Vard Holdings Limited (“VARD”) has secured a contract for the design and construction of one Offshore Subsea Construction Vessel (“OSCV”) for Farstad Shipping (“Farstad”).

US Jury Rules in Favor of Apache Corp.

Apache Corp was not in breach of contract in a lawsuit brought by Houston-based oil and gas producer W&T Offshore Inc in 2011, a federal jury found on Monday, according to a court filing.

Finance

Container Volumes on the Rise in South Carolina

Container volume up 13 percent at South Carolina Ports Authority; Charleston benefiting from federal appropriations    The SC Ports Authority announced another

Liebherr Expects Turnover Dip

For the 2014 business year, the Liebherr Group is currently anticipating an overall turnover of 8,866 million euros (2013: 8,964 million euros). In the area of construction machines and mining,

Rig Moves: Mobilized for Performance

The operation of an oil field involves moving rigs or jackups in a maneuver referred to as a rig move. These complex operations require experience and the coordination of all stakeholders.

 
 
Maritime Contracts Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Electronics 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: 0.8878 sec (1 req/sec)