Kim Heng Offshore & Marine

Kim Heng Offshore & Marine: 3Q14 net profit tumbled 62% y/y to $1.2m, while revenue reduced 23% to $13.8m, mainly due to further delays in the arrival of drilling rigs and offshore support vessels for the second consecutive quarter. The disappointing top line was weighed mainly by its Offshore Rig Services and Supply Chain Management segment, on lower marine offshore support services income (-41%), chartering and towage income (-11%), sale of materials (-7%) and equipment rental income (-13%). Gross margin slipped 7 ppts to 36% as business mix moved towards less profitable business activities.