Kim Heng Offshore and Marine’s net profit plunged 62% in Q3

It raked in a measly $1.2m last quarter.

Catalist-listed Kim Heng Offshore and Marine was plagued by another slow quarter in Q3. The group’s revenue fell 23% year-on-year to $13.8m, while its net profit plunged drastically by 63% to $1.2m.

According to OCBC, the results are particularly disappointing as Kim Heng was expecting stronger results in 2H14. Its expected workflow did not materialize as the offshore and marine industry continued to slow down.

“Currently, the group has an order book of about S$80m vs. S$86m in Jul 2014, but with the recent de-rating of the broader sector, we lower our P/E from 10.5 to 10x, and also cut our FY14F and FY15F earnings estimates by 33% and 23% respectively with the weaker-than-expected results and a slowdown in industry activities,” stated OCBC.