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NewOcean Energy Holdings forecasts 87% decrease net loss on year for 1H2021

26 Aug 2021

Hong Kong listed NewOcean Energy Holdings Limited on Wednesday (25 August) forecasted an 87% decrease in net loss on year for the six months ended 30 June 2021 (1H2021) based on a preliminary assessment.

The company is expected to record consolidated net loss of approximately HKD 170 million (USD 21.84 million) for 1H2021, as compared to a consolidated net loss of approximately HKD 1,351 million for 1H2020.

The significant net loss was recorded in 1H2020 because:

  • the COVID-19 pandemic and slump in global oil prices seriously affected the gross profit margin derived from the Group’s business in oil bunkering and sales of electronic products, causing the overall gross profit margin of the Group for that period to drop to 0.41%
  • the Group had experienced undue delay in trade receivables collection and therefore around HK$ 550 million impairment losses on trade receivables were provided.

In 1H2021, the Group was undergoing debt restructuring and the management reallocated internal resources to concentrate on energy products business and substantially contracted the trading of electronic products, it explained.

Although the global market was still affected by the COVID-19 pandemic, the demand for energy products gradually grew back to normal and thus the overall gross profit margin derived from the energy product business in 1H2021 rose to approximately 3.40%.

On top of that, in contrast to 1H2020 there were no further material impairment losses on trade receivables required to be made in 1H2021.

Related: NewOcean posts USD 479 million FY 2020 loss; possible downsize of oil business
Related: NewOcean Energy delays release of 2020 financial results; to be published by end June
Related: NewOcean appoints Crowe as new auditors; replaces Deloitte Touche Tohmatsu
Related: NewOcean creditor scheme meeting dates at courts now ‘unrealistic’; delayed till further notice
Related: NewOcean auditors resign due to significant outstanding documents & information
Related: NewOcean revises creditor scheme meeting dates at Hong Kong, Bermuda Courts due to ‘substantial’ amendments
Related: NewOcean records USD 304.3 million loss, portion of SG bunkering business to remain
Related: NewOcean Energy issues USD 304.8 million net loss warning ahead of FY 2020 results
Related: NewOcean proposal to adjourn court scheme meeting approved by creditors
Related: NewOcean creditors meeting application granted by Supreme Court of Bermuda
Related: NewOcean planning creditors meeting, foundation of debt restructuring plan laid out
Related: NewOcean records USD 174 million 1H 2020 loss; Singapore bunkering business remains
Related: NewOcean Energy publishes profit warning to shareholders ahead of 1H 2020 results
Related: NewOcean Energy records 66% bunker sales jump to 4.5 million mt in FY 2019

 

Photo credit: NewOcean Energy Holdings Limited
Published: 26 August, 2021

 

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