Singapore-based CH Offshore Annual Profit Plunge

For the financial year ended 30 June 2013, the Group, which owns PSV's, AHTS & offshore maintenance vessels, has recorded loss after income tax of US$7.108 million which was 121.3% lower than the profit after income tax of US$33.433 million for the previous financial year ended 30 June 2012.

Revenue
Revenue declined 7.2% to US$47.819 million from US$51.514 million. During FY13, revenue was mainly affected by two vessels which have completed their respective contracts in January 2013. Thereafter, they were docked for their first mandatory overhaul and upgrading works. As at 30 June 2013, all the vessels were fully utilized except for these two which were still undergoing repair and upgrading works.

Other Expenses
Other expenses comprised mainly allowance for doubtful trade receivables of US$43.95 million. The Group had announced this outstanding debts in its First Half-Year and 3rd Quarter Announcements that it was taking appropriate actions to recover the said debts. While efforts are still on-going to recover this debts, the Group deemed it prudent to make an allowance for doubtful trade receivables for FY13 as no further payments were received from the client since October 2012 and both the vessels have completed their respective contracts in January 2013. The Group did not make an allowance in FY12, as the client did not dispute the invoices and had continued to make payment.

Commentary
Although the Company has made an allowance for doubtful trade receivables of US$43.95 million in full for the financial year just ended, it will continue to ensure that no effort is spared to recover the outstanding debts.