The board of Mooreast Holdings 1V3 has announced that it expects to report a net loss for the 2HFY2023 ended Dec 31, 2023, and the full-year FY2023.
The expected loss has been attributed to lower revenue contributions from the group’s mooring division, which was affected by the slowdown in oil demand and deterioration in the offshore oil and gas market.
Higher third-party cost of goods and the increased cost of fabrication also resulted in lower gross profit margins, while other income decreased due to fewer government grants and decreased contributions from the sale of scrap metal and disposal of plants and equipment.
The FY2023 period also saw increased marketing and distribution expenses as the group ramped up marketing efforts amid a pick-up in renewable energy opportunities.
In addition, there was also an increase in administrative expenses from costs incurred to upgrade IT infrastructure and the enhancement of IT security to reduce cyber security risks, as well as repair work performed on the facility of the Group at 51 Shipyard Road.
Finally, higher interest expenses were recorded from higher interest rates charged on the commercial property loans and shareholder loans, as well as for convertible notes.
The group expects to maintain positive operating cash-flow for FY2023, and has sufficient liquidity to meet its operating and financial commitments.
Mooreast is in the process of finalising its unaudited consolidated financial results for 2HFY2023 and FY2023, which will be announced on or before Feb 29.
Shares in Mooreast closed unchanged at 11.9 cents on Feb 22.
