O&M firm Gaylin spills more red ink with loss of S$2.6m in Q3

MULTIDISCIPLINARY offshore and marine (O&M) services firm Gaylin Holdings widened its losses for the third quarter ended Dec 31, 2017 - recorded by the company as Q3 FY2018 - by posting a loss of S$2.61 million, a further drop of 29.8 per cent compared to the year-ago period.

Revenue similarly fell by 23.6 per cent to S$14.6 million from S$19.1 million in the year before on the back of a still-weak O&G market.

The decrease was mainly due to a drop of S$5.3 million in the rigging and lifting segment, which was offset by an increase of S$0.8 million in the ship chandling segment, Gaylin said.

Loss per share widened to 0.6 Singapore cent per share in the period ended Dec 31, 2017, and net asset value fell further to 19.67 Singapore cents in the same period, compared to 21.44 Singapore cents as at nine months ago.

Gaylin provides rigging, lifting, winching and marine solutions to the global O&G market.

In October 2017, PeakBayou Limited - a unit of private equity fund ShawKwei Asia Value Fund 2017 - entered into a conditional placement agreement to buy 1.36 billion new ordinary shares in Gaylin for five Singapore cents apiece, totalling S$68 million.

Gaylin said it has since received in-principle approval for the listing and quotation of the subscription shares, which represent around 75.64 per cent of the group's enlarged share capital.

Desmond Teo, Gaylin's executive director and chief executive, said the deal is a "positive move" as the Group could use the gross proceeds to strengthen its capital base as well as use them for general working capital purposes.

"With this capital injection, we are confident of riding out the O&G downcycle which is showing signs of rebalancing from the recent recovery in oil prices. This is a positive sign for us as our Group's products and services demands are generally driven by the overall O&G performance," Mr Teo said.

Gaylin's shares last traded on Feb 5, closing at S$0.09 apiece.