SINGAPORE – Listed offshore and marine energy engineering and support services company Kim Heng put out positive earnings guidance after the market closed on Tuesday.
In a statement issued through the Singapore Exchange, the company said that “based on the information currently available and the management’s preliminary review of the unaudited consolidated financial results”, the company would post a net profit for the full year ended Dec 31, 2022.
This would represent a significant turnaround after more than three years of losses amid depressed global energy markets.
“The group’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,” it said.
It added that stronger demand for marine and offshore services, prudent acquisition of vessels during the economic downturn and its ability to repurpose its vessels to meet changing customers’ requirements also boosted profits.
“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,” Kim Heng said in a statement.
Besides supporting traditional offshore oil and gas exploration activities, Kim Heng has in recent years ventured into the offshore renewable energy segment where it is involved in engineering and installation works for offshore wind farms off the coasts of Taiwan and Vietnam.
The company emphasised that it is still in the process of finalising its financial results for FY2022.
Further details of the financial performance will be disclosed when its unaudited financial results for FY2022 are released on or before Feb 28, it added.
