SINGAPORE (July 26): BH Global posted earnings of $282,000 for the 1H17 ended June, compared to a loss of $39,000 a year ago.
1H revenue fell 33% to $16.8 million in 1H17 due to slowdown in activities in the marine and offshore sectors as a results of weak shipping markets and low oil prices.
Sales of Marine cables and accessories fell 58% to $7.3 million but this was offset by a 9% increase in sales of Lamps and other equipment to $3.2 million.
Sales from the Security business, which mainly provide IT security products and solutions, rose to $1.9 million from $157,000 a year ago.
Share of results of JVs rose to $552,000 from $114,000 as there was no further share of loss from GSSI in 2Q17 as the group had made provision for the losses in 4Q16.
Other operating income also rose to $543,000 from $146,000 mainly due to a gain in foreign exchange.
Cost of sales, admin costs and finance costs narrowed 40%, 38% and 17% to $9.7 million, $2.7 million and $195,000 respectively as a result of the cost-cutting measures.
BH Global says its Supply Chain Management division is still facing difficult market conditions due to the continuing slowdown in the marine and offshore industries as a result of low oil prices.
The group has also previously announced to the Singapore Exchange in September that its subsidiary, Oil & Gas Solutions (OGS) has initiated creditors’ voluntary liquidation proceedings.
Shares in BH Global closed at 15 cents on Wednesday.
