Swissco posts US$300 million net loss year to date, goes into judicial management

Singapore's Swissco Holdings reports a S$418.5 million (US$296 million) net loss in the third quarter.

Oil rebounds after 8% fall as Iran says open to talks with Saudi Arabia
A Sembcorp employee stands near the turret of Tullow Oil's newly completed Floating Production, Storage and Offloading vessel (FPSO) Prof. John Evans Atta Mills at Sembcorp Marine's Jurong Shipyard in Singapore January 20, 2016

Singapore's Swissco Holdings reported a S$418.5 million (US$296 million) net loss in the third quarter, compared with a US$11 million profit a year ago and said it is filing for interim judicial management after lenders refused to let it restructure debt.

Swissco became the third energy company to take put itself under judicial management in recent months in Singapore. The company disclosed that net loss for the nine months ended September was US$299.9 million, compared with a net profit of $46 million in the same period last year.

The oilfield vessel operator said its impairment charges for the three months to September 30 stood at US$181 million.

Revenue in the third q1uarter fell 63.5 percent to US$3.8 million as revenues from its drilling division dried up.

The SGX-listed company is an integrated, international marine company providing rig and vessel chartering, ship repair, maintenance and maritime services for the oil and gas, shipping and marine infrastructure industries.

Singapore's offshore and marine industry is facing a crisis as companies have cut spending to manage the fall in oil prices. Earnings at marine services companies like Sembcorp Marine and Keppel Corp, as well the shipbuilding and offshore support companies, have been hit by the industry downturn.

Offshore support vessel company Vallianz Holdings said on Monday net profit for the third quarter fell 84.9 percent to US$693,000 from US$4.6 million a year ago.

EMAS Offshore reported a full-year loss of $265.3 million (S$137.2 million) last month and said net loss for the three months ended 31 August 2016 stood at $98.5 million.

Offshore services companies like Swiber and Sembcorp Marine have also faced headwinds after the continued global oil market downturn pulled back investments in the sector.