Charisma Energy Services Limited: Net Profit Decline of 82.8% in FY2024

Business Description

Charisma Energy Services Limited is a Singapore-based company that operates in the energy services industry. The company has two primary business segments: (1) Renewable Energy, which includes the ownership and operation of 13 mini-hydroelectric power plants in Sri Lanka with a combined capacity of 43.46 megawatts, and (2) Offshore Support Services, which previously included the ownership and operation of two anchor handling tug supply (AHTS) vessels. [[3]]

Financial Statement Analysis

Based on the company’s FY2024 Audited Financial Statements, the following key findings are observed:

Income Statement

– The company reported a net loss of \$1,241,000 in FY2024, a decline of 82.8% from the previous year’s net loss of \$7,220,000. [[8]] – The company’s revenue streams and customer base were not explicitly disclosed in the report.

Balance Sheet

– As of December 31, 2024, the company was in a net liabilities position of \$50,906,000 and a net current liabilities position of \$56,050,000. [[8]] – The company’s ability to continue as a going concern is dependent on the completion of the New CSA with the Investor, successful debt restructuring, and generating positive cash flows from its continuing operations. [[8-9]]

Cash Flow Statement

– The report did not provide detailed information on the company’s cash flow statement.

Key Developments and Initiatives

– The company entered into a New CSA with an Investor to subscribe for new shares and share options, and to undertake a debt restructuring plan. [[8-11]] – The company successfully divested its two remaining AHTS vessels in 2023 and completed the divestment of its solar power plant in China in 2024. [[9-10]] – The company proposed a Scheme of Arrangement and a Supplementary Scheme of Arrangement with its creditors, which were approved by the Singapore High Court. [[10-11]]

Recommendation

For investors currently holding the stock: Given the company’s significant net liabilities position, ongoing debt restructuring, and uncertainty around its ability to continue as a going concern, it is recommended to hold the stock and closely monitor the company’s progress in completing the New CSA and debt restructuring plan. Investors should be aware of the high-risk nature of this investment.
For investors not currently holding the stock: It is recommended to avoid investing in Charisma Energy Services Limited at this time, as the company’s financial position and future viability remain highly uncertain. Investors should wait for the company to demonstrate a successful execution of its recapitalization and debt restructuring plan before considering an investment.

Disclaimer

This report is based solely on the information provided in the FY2024 Audited Financial Statements of Charisma Energy Services Limited. The recommendations made are subject to the risks and uncertainties inherent in the company’s current situation. Investors should conduct their own due diligence and seek professional financial advice before making any investment decisions.

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