It’s been awhile since I delved into the reading of annual reports. Last night I decided to read reports of several listed O&G/marine companies in Singapore.
Big losses
Undoubtedly many listed O&G/marine companies were in dire straits and outlook ahead were uncertain. There is no question that balance sheets of many these companies are strained with piling debts. Liabilities exceeded assets with limited cash to keep business going. Not to mention the reliability of the “assets”, if they truly worth what it was stated. Auditors also raised going concern doubts for many companies.
Many companies had loses in 2015 & 2016 that cannot even covered what they had been earning for the last 5 or more years during the hey days when Oil prices were soaring. Loses can be as high as tens or even hundreds of millions per annum for companies with market cap of less than 100 millions. …