Kim Heng 5G2 8.05%   issued a profit guidance announcing that it expects net profit for FY2022 ended Dec 31, 2022, to be positive, compared to FY2021.

 

To recap, the group recorded a loss of $5.9 million in FY2021, although revenue was 68% higher y-o-y at $63.2 million.

 

The group&rsquo s expected positive net profit for FY2022 was mainly attributable to operating profit and increase in other income contributed by gain on disposal of vessels.

 

The group is able to achieve such positive net profit due to stronger demand for marine and offshore services its prudent acquisition of vessels during the economic downturn and able to leverage on knowledge from oil & gas operations to repurpose the existing fleet of vessels by retrofitting, modifying and reconstructing at its two shipyards to meet customers&rsquo requirements.

 

Repurposing of existing fleet for sale is in the ordinary course of business for the group. The group is strengthening its offshore capabilities by repositioning to actively pursue more opportunities in offshore windfarm projects in Taiwan, Vietnam and United States of America.

 

The group is still in the process of finalising its financial results for FY2022. Further details of its financial performance will be disclosed when it announces its unaudited financial results for FY2022 on or before Feb 28.

 

 

Units of Kim Heng, namel Kim Heng Marine & Oilfield (KHMO), Khan Hin Engineering (KHE), and its 49% owned subsidiary Bridgewater Marine (Taiwan) L(BMT) have been awarded multiple contracts totalling US$35 million comprising of new builds and sale of various existing marine and land-based marine assets. The contracts were awarded by establised construction companies in Taiwan. KHMO was warded US$17.3 million of contracts, KHE US$14.6 million and BMT US$3.1 million.

 

Under the Contracts, KHMO and KHE will provide design, engineering and shipbuilding for the new vessel builds. Completion date is scheduled for 4Q2023. The contracts are expected to contribute positively to the group&rsquo s earnings per share and net tangible assets for the financial year ending December 31, 2022 and December 31, 2023.

SINGAPORE - Listed offshore and marine player Kim Heng posted its first set of positive results since 2016, thanks to an improving operating environment, gains from sale of assets and higher government grants.

 

The company reported on Monday (Aug 8) a net profit of $5.07 million for the six months to June, reversing a net loss of $3.65 million for the same period a year ago.

 

This came on the back of first-half revenue growth of 5 per cent to $30.48 million from $28.94 million for the year-ago period.

 

The results translated into earnings per share of 0.7 cent from a loss per share of 0.5 cent. As at June 30, the company' s net tangible asset per share stood at 8.5 cents.

 

Among its four key business units, revenue from its renewable energy segment dived 97 per cent to $282,000 from $8.06 million a year ago.

 

The company, which has more than two dozen offshore service vessels, said this was because the new offshore windfarm projects it had secured in Taiwan would only commence during the second half of this year.

 

Kim Heng has been active in providing offshore vessels and engineering services to windfarm projects off the coast of Taiwan over the past year.

 

More recently, its wholly owned subsidiary Adira Renewables signed a memorandum of understanding with Crowley Wind Services to cooperate on offshore wind farm cable laying installation projects across the United States' east coast.

 

Its executive chairman Thomas Tan said the company had secured a significant number of contracts to service the offshore windfarm markets and expressed confidence that the projects would start getting off the ground some time during the second half of this year.

 

" We continue to see recovery in all segments of the oil and gas sector, with demand for vessel chartering and renewable windfarm projects growing strongly," he said. " We expect the group to perform positively amid the gradual reopening of borders worldwide, the tight supply situation in oil and gas and increasing focus on renewable energy in the region in the foreseeable next 12 months."

 

Kim Heng' s chartering of vessels segment' s revenue remained constant at about $12 million, while its marine construction revenue increased by $2.5 million, or 147 per cent, to $4.2 million as crane and equipment utilisation rates surged.

 

Its oilfield services revenue rose by $7.3 million, or 109 per cent, to $14.1 million due to higher material sales and more projects completed following the easing of Covid-19 safe management measures.