SINGAPORE (May 9): Hai Leck, the oil & gas civil engineering firm, reversed into a loss of $1.5 million for in 3Q18 ended March compared to a year ago on the back of a 33.2% fall in revenue to $19.3 million.
This resulted in a 61.1% drop in earnings to $2.7 million in for the nine months ended March (9M18) from $7.1 million in 9M17.
Revenue for 9M18 decreased by 10% to $68.2 million compared to $75.8 million recorded in 9M17 mainly due to lower project revenue. Cost of sales decreased by 7.9% to $35.5 million in line with the lower revenue recognised.
Other income for 9M18 was $1.3 million, up $0.5 million compared to 9M17 mainly due to higher net gain on disposal of fixed assets and government grants.
For 9M18, total operating expenses was comparable to 9M17 at $30.6 million.
Hai Leck says the O&G industry remains weak and recovery is expected to be slow. The group will therefore continue to judiciously control operating cost and capital investments.
Shares in Hai Leck closed 0.5 cent lower at 56 cents on Wednesday.
