GSS ENERGY has turned in earnings of S$3.1 million in 3Q2015 on revenue of S$17.5 million, thanks to its precision engineering segment. Its oil & gas segment did not contribute any revenue.
Gross profit for 9M2015 was S$15.0 million, representing a gross margin of 28.8%. The precision engineering business contributed S$12.4 million, with a gross margin of 26.0%.
The precision engineering business rode on improved operational processes with higher level of automation as well as from shifting to products with lower material content, said GSS Energy.
Its CEO, Sydney Yeung, said, “Further to the impairment provision we made in 2Q2015, the financial performance has returned to reflect the regular business operations of the Group. The PE business continues to perform well with improved profit margin, and has stabilized the overall financial results of the Group. On the O&G front, while evaluating our existing assets in CSE, we have been working persistently with the local government to establish a more favourable business model.
"The investment project in West Jambi Block in Sumatra is being implemented according to schedule, and we expect the drilling to start in due course. In terms of oil trading, we will take a prudent approach, looking to establish long-term partnerships that would bring in regular and sustained revenue.
"While our overall performance is well supported by the PE business, we are making our best effort to build up oilfield assets and the business structure, and derive a viable strategy in a weak and volatile market for the O&G business. We are making solid progress, and we believe these efforts will bear fruit and enhance shareholders value in the long term, as the market eventually recovers.”
|BH Global Corporation said its Supply Chain Management subsidiary, Beng Hui Marine Electrical (BHM), has been awarded contracts worth around S$6 million by various marine and offshore customers.
Notably, BH Global won a significant supply contract to a Floating, Production, Storage and Offloading (FPSO) unit.
These contracts relate mainly to the supply of cables and lighting products. An estimated 95% of the contracts will be delivered in the first quarter of 2016.
Amid the prolonged weakness in the shipping industry and slump in oil prices which have affected the exploration and production budgets of oil-related companies worldwide, these contracts won by BHM show the resilience of its Supply Chain Management business.
The contract wins are also a testament to the strong partnership it has developed with these customers, and the quality of the Group’s products and services, said the company.
Vincent Lim, CEO of BH Global, said, “It is heartening to note that BHM has managed to secure these substantial contracts with both local and international customers despite the continuing weakness in both shipping and oil-and-gas sectors which have affected many players. It reflects positively on the Group’s capabilities and track record when customers entrust us with these high value critical contracts.”