SINGAPORE (Aug 24): Tiong Woon, the heavy lift specialist and services provider, recorded a net loss of $9.6 million in FY17, a tad lower than the loss of $9.7 million recorded in FY16.
Revenue for the full year came in at $114.8 million, 18% lower compared to a year ago, mainly due to lower contribution from its Heavy Lift and Haulage segment, particularly in Singapore, India and the Middle East.
Revenue from the Marine Transportation segment decreased by 14% to $3.3 million in FY17, mainly due to fewer chartering jobs secured as a result of the downturn in the offshore and marine industry.
The Engineering Services segment recorded a decline in revenue by 6% to $10.3 million in FY17, mainly due to the substantial completion of a project in the Middle East.
Cost of sales declined 17% in FY17 to $88.1 million, in tandem with the decline in revenue.
Gross margin was slightly lower at 23.2% in FY17 compared to 23.8% in FY16, mainly due to lower margins from the Heavy Lift and Haulage segment.
The group recorded other gains amounting to $2.6 million in FY17, compared to other losses of $0.3 million recorded a year ago, mainly attributable to the gain on disposal of plant and equipment of $1.6 million, operational exchange gain of $0.6 million and gain from the disposal of a subsidiary of $0.3 million.
Ang Kah Hong, group chairman and MD, says: “Our results reflect the very challenging and competitive environment that we currently operate in. We will continue to monitor our costs, as we work towards improving profitability. The group will continue our efforts to build on our core strengths and capabilities to maintain existing business relationships and seek out new opportunities.”
Shares in Tiong Woon closed 2 cents higher at 24 cents on Thursday.