Kim Heng Ltd. Issues Loss Guidance for FY2025: Key Takeaways for Investors
Kim Heng Ltd., a marine and offshore services provider listed in Singapore, has released a loss guidance for its financial year ended 31 December 2025 (FY2025). This announcement provides important context for shareholders and potential investors regarding the company’s operational challenges and outlook. Below, we analyze the key disclosures from the official report.
Key Financial Highlights
The company expects to report a net loss for FY2025, compared to its performance in FY2024. The main drivers contributing to the anticipated loss include:
- Late delivery penalties and cost overruns on a new shipbuilding vessel.
- Lower-than-anticipated revenue from the newly established geotechnical survey segment, which remains in its growth phase.
- Reduced charter margins due to several Anchor Handling Tug Supply (AHTS) vessels undergoing mandatory drydocking and special surveys, limiting their operational availability.
- Loss on disposal of cranes.
Operational Status Update
Kim Heng reported that most drydocking activities are now completed. The AHTS fleet is fully operational and positioned to improve utilization and strengthen revenue generation going forward.
Chairman’s Statement
“With the drydocking largely completed, the AHTS fleet is now fully operational and positioned to improve utilisation, strengthen revenue generation.”
“Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company. If shareholders and potential investors are in doubt as to the action they should take, they should seek advice from their stockbrokers, bankers, solicitors, accountants, tax advisers or other professional advisers.”
— Tan Keng Siong Thomas, Executive Chairman & CEO (23 February 2026)
The Chairman’s tone is cautious, highlighting recent operational setbacks but also expressing optimism about improved asset utilization in the near future.
Responsive Summary Table: FY2025 vs FY2024
| Metric |
FY2025 (Guidance) |
FY2024 (Actual) |
YoY Change |
| Net Income |
Net Loss (exact figure not disclosed) |
Net Profit (exact figure not disclosed) |
Negative YoY swing |
| Revenue |
Lower than anticipated (exact figure not disclosed) |
Higher (exact figure not disclosed) |
Decrease YoY |
| Dividends |
Not disclosed |
Not disclosed |
N/A |
| EPS |
Not disclosed, expected negative |
Not disclosed, positive |
Negative YoY swing |
Note: Exact figures for revenue, net income, EPS, and dividends were not provided in the report.
Exceptional Items and Events
- Late delivery penalties and cost overruns: These are exceptional expenses tied to the new shipbuilding project.
- Loss on disposal of cranes: An asset disposal resulted in additional losses.
- Operational delays: Drydocking of AHTS vessels reduced revenue and margins but is now completed.
Forecasted Events Impacting Performance
The company expects improved operational availability and utilization of its fleet post-drydocking, which may strengthen future revenue generation. However, the geotechnical survey segment is still in its growth phase and is not yet contributing meaningful revenue.
Conclusion & Recommendations
Kim Heng Ltd. is facing a challenging FY2025, with a guided net loss driven by operational setbacks, cost overruns, and asset disposals. While the completion of drydocking and full operational status of the AHTS fleet provide some optimism for improved performance ahead, the current outlook remains weak due to the company’s inability to offset exceptional expenses and lower-than-expected revenues.
Recommendations
- If you are currently holding Kim Heng Ltd. stock: Exercise caution. Consider reviewing your position in light of the expected net loss and lack of disclosed dividends. Monitor the upcoming full financial results and any improvements in operational performance before making further decisions.
- If you are not currently holding Kim Heng Ltd. stock: It may be prudent to wait for clearer signs of recovery and improved financial performance. The company is in a transition phase with operational challenges still impacting earnings.
Disclaimer: This analysis is based strictly on the information disclosed in the official company announcement. It does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisers before making any investment decisions.
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