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    Nam Cheong's future in doubt says auditor

    Yard News // March 20, 2017

    Nam Cheong Limited says its auditors have cast doubt on its ability to continue as a going concern.

    The company said its auditors, BDO LLP, included an emphasis of matter with respect to the material uncertainty related to going concern in their report on financial statements for the group for the financial year ended 31 December 2016.

    BDO LLP said: "For the financial  year ended 31 December  2016, the group experienced  a significant  decrease  in revenue and incurred a net loss of approximately RM42,771,000 due to deferment of the delivery of vessels  that  had been  requested  by several  customers. The current  downturn  in the oil and gas industry may continue to add pressure to the group’s financial performance and its operating cashflows.

    "As at 31 December 2016, the group’s loans and borrowings that were classified as current amounted to RM948,720,000 of which RM278,566,000 (S$90 million) pertained to medium term notes that are due for repayment on 28 August 2017. These amounts exceeded the group’s cash and cash equivalents of RM162,618,000 as at 31 December 2016."

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