KIM HENG OFFSHORE & MARINE HOLDINGS LIMITED
ANNUAL REPORT 2014
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FY2014 was S$27.0 million.
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FY2014, compared to S$17.1 million in FY2013.
With over 40 years of experience in integrated offshore
and marine value chain services, the Group has been well
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economic cycle and its impact on the offshore and marine
industry. As we step into 2015, we will continue our strategy
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INDUSTRY OUTLOOK & PROSPECTS
As a result of the uncertainty of oil prices, the general offshore
andmarine industry has cut their capital expenditureand thus
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The demand in the offshore andmarine industry remains soft
in general as companies switch to a cost cutting mode. Such
effects could last for a prolonged period, causing growth in
the offshore subsea services sector to remain subdued.
Given the recent developments inour operatingenvironment,
we expect our business to remain volatile and challenging
through 2015.
Notably, various industry reports and news coverage have
shown announcements of receding capital expenditures in
multiple companies, and reductions in their rig count. While
this is certainly not the most optimistic information, we feel
that therewill still be opportunities presented to us in themidst
of the industry slowdown.
The Group believes that more rigs from around the region
may be moved to Singapore, or nearby, to be warm or cold
stacked. This presents a new avenue of increased servicing
revenue for the Group, which has a decent estimated gross
margin of between 30-35%.
Inaddition to this, whether the rigs are stagnant or active, they
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stringent global safety regulations and compliance standards
associated with offshore operations, is expected to provide a
level of demand for our services.
CHAIRMAN’S
MESSAGE
