OFFSHORE support vessel provider Vallianz Holdings and crane specialist Hiap Tong Corporation on Thursday warned of losses for their 12 months ended March 31.

 

Catalist-listed Vallianz said it is expecting to record non-cash impairment expenses for certain assets in FY2020, comprising fixed assets and recoverability of prepayments, following an in-depth evaluation of the carrying value of these assets.

 

The evaluation was conducted " in light of the continued challenges and slow recovery in the offshore and marine market" , it said.

 

The group also expects to record a compensation expense for late delivery of vessels, it added. As a result, it expects to " continue to post a significant net loss" for FY2020.

 

Vallianz reported a US$128.2 million loss for fiscal 2019, against a profit of US$16.7 million for 2018. It will release its results on July 29.

 

Meanwhile, Hiap Tong said it expects to sink into the red for FY2020, mainly due to the need to make a provision for an impairment loss on its fixed assets.

 

The Catalist-listed company reported a profit of S$2.25 million for fiscal 2019, from S$1.18 million the year before. It will release its results on or before July 29.

 

OFFSHORE support-vessel owner and operator Vallianz Holdings said it will exercise its rights to defer a distribution to perpetual securities holders that was due on Monday.

 

Vallianz had issued US$22.5 million worth of senior perpetual securities, carrying a 4 per cent coupon, as part of its S$500 million multi-currency debt-issuance programme.

 

In a bourse filing on Monday, the company said this had been on the basis that in the preceding 12 months, there was no dividend distribution or other payment that has been paid or declared by the company. 

 

In addition, none of the company&rsquo s junior obligations should have been redeemed, reduced, cancelled, bought back or acquired by the company.

 

In 2018, Vallianz too exercised its rights to defer the payment of distributions for its US$22.5 million 4 per cent senior perpetual securities.