Swiber reports FY15 net loss of US$18.7 millionCompany News // March 1, 2016
Swiber Holdings Limited has reported a net loss of US$18.7 million for the financial year ended 31 December 2015 (FY15) against a profit of US$31.2 million previously mainly due to impairment charges and absence of one-time gains.
The core business of the group continued to see growth particularly in Latin America and South Asia despite depressed market conditions. Group revenue rose 14.7 per cnt to US$833.0 million in FY15 on higher contributions recognised from Latin America and new projects in South Asia. Latin America contributed 53.6 per cent or US$446.8 million to group revenue, South Asia US$244.1 million, while Southeast Asia and other markets added US$117.1 million and US$24.9 million, respectively.
Other operating income fell 91.4 per cent to US$8.9 million due mainly to the presence of a one-time gain in FY14 on disposal of a group of subsidiaries and associates amounting to US$101.8 million, as well as lower foreign exchange gains of US$7.9 million and the absence of write-back receivables in FY15. Impairment loss of trade receivables amounting to US$8.6 million raised other operating expenses by 100.9 per cent from US$5.9 million to US$11.9 million. Share of profit from associates and joint ventures dropped 32.8 per cent to US$27.8 million as a result of lower contributions from certain associates. Impairment loss of investment in an associate of US$24.6 million has further hurt the bottom line considerably.
The group’s gross profit stands at US$99.3 million. Gross profit margin improved to 11.9 per cent in FY15 from 2.4 per cent in FY14 due mainly to stringent control over operating costs. Administrative expenses fell 48.0 per cent to US$28.8 million, reflecting Swiber’s cost optimisation programme. Finance expenses decreased 7.9 per cent to US$60.4 million.
Swiber's Chief Executive Officer and President Francis Wong said: “The oil and gas industry remains very cautious due to the weak oil prices with major oil companies aggressively cutting costs and delaying their projects. However, we believe that the impact on shallow water activities will be lower. The Swiber team is working very hard as we face challenging market conditions to continue to expand our pipeline of projects and fill up our orderbook. We believe that our track record of executing projects in a timely, cost-efficient manner will put us in good stead.”
Swiber’s orderbook stood at US$1.35 billion as of 29 February 2016. The group continues to make headway in strengthening its capabilities in higher-value EPIC services and improving its operational performance while maximising cost efficiencies. The group has also put in place stringent controls on costs to protect its bottom line.