KUALA LUMPUR (April 14): Sealink International Bhd said its independent auditor has raised an uncertainty relating to the offshore marine support vessel operator's going concern in view of the current economic conditions and Covid-19.
The auditor, Grant Thornton Malaysia PLT, in its report noted that Sealink's financial statement for the year ended Dec 31, 2021 (FY21) showed that the group incurred a net loss of RM65.37 million.
"As of that date, the total current liabilities of the group and of the company exceeded their total current assets by RM68.58 million and RM8.87 million respectively," the report further noted.
Grant Thornton also noted that the Covid-19 outbreak has brought uncertainties to the offshore marine sector.
"These events or conditions indicate the existence of a material uncertainty which may cast doubt on the group's and the company's ability to continue as a going concern.
"The ability of the group and of the company to continue as a going concern is dependent on the success of future operations of the group and of the company and the continued financial support from their bankers and a major corporate shareholder. Our opinion is not modified in respect of this matter," the auditor added.
Grant Thornton said that in view of the depressed economic conditions in the offshore marine sector, the carrying amount of Sealink's vessels might exceed their recoverable amounts and therefore the carrying amount had to be impaired.
The auditor noted that Sealink has taken various measures to streamline its operations and will continue to actively monitor and manage its funds to enable the group to maintain safety and quality services and remain competitive.
"Amongst others, the group has increased bidding opportunities and secured several chartering contracts and disposed of certain vessels subsequent to the financial year end," said Grant Thornton.
Sealink's share price finished 4.76% or half a sen higher at 11 sen, bringing a market capitalisation of RM52.5 million.
Source: TheEdge - 15 Apr 2022
