Kim Heng Offshore & Marine has issued a profit guidance for its 2Q15 results, as it expects to report a net loss in the quarter, compared to a net profit of S$1.6m in 2Q14. This was mainly due to a decrease in revenue due to the low demand for maintenance of rigs and related goods and services because of the fall in global oil prices. Recall that we were forecasting net profit of S$4.3m in FY15; 1Q15 saw S$1.1m in net profit. We currently have a HOLD rating with a S$0.13 fair value estimate on the stock.

Source: OCBC Research - 11 Aug 2015