Hong Kong-listed NewOcean Energy Holdings Limited (NewOcean), the parent company of bunkering firm NewOcean Fuel, on Thursday (27 March) posted a profit warning supplemental announcement.
Based on its assessment of the unaudited consolidated management accounts of the group for the six
months ending 30 June 2020 (1H 2020), NewOcean said it is expected to record a consolidated loss of
approximately HKD 1,350 million (USD 174.2 million) for 1H 2020 as opposed to a consolidated profit approximately HKD 301 million (USD 38.8 million) for the corresponding period last year.
“Due to the global pandemic of COVID-19 and the slump in global oil prices during 1H2020, the group’s business operation has been seriously affected especially the oil bunkering business in Hong Kong and Singapore and the electronic business in the People’s Republic of China,” it explained.
“On top of the foregoing, the group has also experienced undue delay in trade receivables collection and inventory being sold under purchase costs in recent months, therefore additional potential impairment losses on trade receivables and allowance for inventories are expected to be provided in 1H2020.”
On top of the reasons outlined above, the company’s board made impairment provisions on trade receivables, inventories and property, plant and equipment amounted to approximately HKD 1.08 billion (USD 139 million) based its assessment with reference to subsequent sales and trade receivable collection after 30 June 2020.
NewOcean added that it is in the process of finalising the interim results for 1H 2020 and information contained in the current announcement is only based on the preliminary assessment by the board with reference to the unaudited consolidated management accounts.
The interim results announcement of the company for 1H 2020 is expected to be released on Monday 31 August, 2020 pursuant to the requirements of the HKSE’s listing rules.
A list of bunkering related developments regarding NewOcean Energy has been compiled below:
Related: NewOcean Energy records 66% bunker sales jump to 4.5 million mt in FY 2019
Related: NewOcean Energy strengthens operations with $23 million loan facility
Related: NewOcean Fuel charters two more bunker tankers for Singapore Straits ops
Related: NewOcean Energy net profit increases to USD 47.24 million in 1H 2019
Related: NewOcean charters VLCC to support Singapore bunker ops
Photo credit: chris-liverani
Published: 28 August, 2020
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