Singapore-listed offshore engineering company NauticAWT suffered a loss of USD2.3 million for the first half of 2015, as compared with a profit of USD1.7 million recorded a year ago.
The company recorded loss despite a revenue increase of USD13.9 million, up 56.7% year on year, dragged down by lower earnings contribution from reduced oil and gas activities in Mexico.
Its gross profit, on the other hand, fell 13.6% to USD3.8 million in the first half of the year from USD4.4 million a year ago.
During the half-year period, NauticAWT’s administrative expenses was USD6.07 million, as compared with USD1.8 million a year ago, because of expenses incurred in acquisition of subsidiaries under AWT International, initial public offering, higher rental, and increased headcount.
“In response to prevailing challenging market conditions, we have commenced restructuring of the acquired group in 2H15 through reorganisation and implementation of certain cost-cutting measures,” said NauticAWT in its filing to the Singapore Exchange.
The company will focus its operations in Asia and the Middle East markets, while reducing its operational footprint in the subsurface and wells business segment in Australia.
NauticAWT also intends to streamline certain support functions to be centrally managed by its Singapore headquarters, saving an estimated USD480,000 per year, excluding one-off restructuring cost.
Additionally, it seeks to diversify its revenue base in the area of mature field production enhancement solutions, sustainable field abandonment, and the renewable energy sector.