Written by The Edge
Mainboard-listed KS Energy Services today announced revenue of $139.6 million and net loss after tax of $25.8 million for the quarter ended 30 June 2010.
KS Energy Services says the group’s profit was hit by revisions in the FRS 27 (Consolidated and Separate Financial Statements) and FRS 103 (Business Combinations), resulting in a loss. Had it not been for this change, the group says it would have reported year-to-date profit after tax of $23m.
During the 6 months ended 30 June 2010, the group completed a restructuring exercise to consolidate its distribution businesses involving Aqua-Terra Supply Co., KS Flow Control and its associate, SSH Corporation.
The group recognised a net gain of $25 million in equity for the six months ended 30 June 2010 in accordance with the revised FRS,, which came into effect from Jan 1.
Other factors contributing to the operating loss this quarter were the lower revenue from the Drilling Services unit where assets are still waiting for charters, and impairments and provisions made this quarter.
Comparing to the second quarter of FY2009 (2Q FY09), revenues were higher by 9%. By business segment, the Distribution business reported revenues of $93.9 million (2Q FY09: $68.8 million) and Drilling Services turned in revenues of $45.7 million (2Q FY09: $59.2 million), accounting for 67.3% and 32.7% of the group’s aggregate revenue respectively.
Dividend : None
