Another of Singapore’s distressed offshore support vessel owners and operators looks set to return to profit this year.
Singapore-listed CH Offshore said in a regulatory filing that it expects to record a net profit for the first half of this year versus the net loss seen 12 months earlier.
The company said the profit guidance follows a preliminary review of the unaudited management results for the January to June 2024 period.
CH Offshore said the net profit was primarily due to higher vessel utilisation for its owned vessels, as well as higher revenue generated from third-party chartered vessels.
The shipowner said it is still finalising the results for the interim period and that further details of the group’s financial performance will be disclosed when it announces its financial results on or before 14 August 2024.
Until then, CH Offshore said shareholders and investors are advised to “exercise caution when dealing in the shares of the company”.
“In the event of any doubt, they should consult their stockbrokers, bankers, solicitors, accountants and other professional advisers,” it said in the filing.
In 2023, CH Offshore posted a full-year loss of $8.2m, against a loss of $3.3m in the prior year.
Revenue in 2023 increased by 29.5% year on year to $24.1m but was offset by a 72.4% increase in costs due to higher bunker and crewing costs.
CH Offshore said the offshore sector experienced an upswing during 2023 with the supply and demand imbalance for OSVs narrowing due to increasing demand in the oil and gas and offshore wind sectors.
“As such, the market saw improving vessel day rates and utilisation across the overall OSV market with some sectors improving more than others,” it said in its recent annual report.
“However, newbuilding activity still remains low as charter hire rates have not sufficiently picked up enough, owners are not able to easily fund the upfront equity and lenders are averse to the sector.”
CH Offshore currently has a fleet of six 12,240 bhp OSVs comprised of the Peridot and the Intan Ratu (both built 2010), the Mutiara Ratu, the M Luisa, the Atlantic Conqueror (all built 2008) and the co-owned Coral (built 2008).
Fellow Singapore-listed company Baker Technology Ltd holds a controlling stake of 54.98% in CH Offshore, a position it has held since it acquired the stake in July 2018.
CH Offshore is currently on the SGX Regulation’s watchlist after posting three consecutive years of financial losses.
If it does not meet the relevant requirements to exit the SGX watchlist within the next 24 months, it may be delisted or have its shares suspended with a view to a delisting.
