SINGAPORE (Nov 7): Viking Offshore & Marine posted a loss of S$2.3 million in 3Q16, compared to earnings of S$0.2 million in the same quarter last year.

Revenue fell 60% to S$7.7 million in the quarter ended Sept, from S$19.4 million in 3Q15.

In a filing to SGX on Monday, the Group said this was mainly due to lower order book carried forward, deferral of projects, and lower new order intake.

“This prolonged industry downturn impacted the Group business activity with delays to existing projects, a trend which is expected to continue,” said Viking Offshore & Marine.

“Sales order intake during the period was also much weaker compared to the prior year due to limited new projects in the market,” it added.

Since 2Q16, Viking Offshore & Marine ceased the recognition of revenue for its second land rig, pending negotiation with the charterer. This was partially mitigated by the recognition of revenue from the chartering of a chemical tanker starting in 3Q16.

Cash and cash equivalents stood at S$10.2 million as at Sept 30, 2016.

Looking forward, the Group said it will “continue to exercise prudence when evaluating potential project and will place greater emphasis on operational cost discipline in project execution”.

Viking Offshore & Marine closed 3% lower at 3.2 cents on Monday.