Kim Heng books $1.7m loss in Q1

It's aggressively cutting costs to stay afloat.

Kim Heng Offshore & Marine's reported a net loss of $1.7m in the first quarter of 2016, compared to its net profit of $1.1m in the same period last year. The group's revenue also dropped 46% year-on-year.

The group's key businesses suffered from lower demand for maintenance of rigs and related goods and services from its customers on back of low oil prices, while vessel sales revenue sank as there were  no vessel newbuilds in 1Q2016.

"As oil prices remain low, downward pressure on offshore exploration activities has not alleviated and the demand for maintenance of rigs and related goods and services has not picked up. Given the current conditions in our operating environment, we expect our business to remain challenging in the next 12 months. We continue to actively explore diversification opportunities into the maritime and marine infrastructure sector," Kim Heng said in its earnings statement.