Rig repair specialist Kim Heng Offshore & Marine Holdings has noted a drop in the number of maintenance jobs for rigs, following the drop in oil prices.

“The decline in oil prices to its lowest level in more than five years has put a downward pressure on offshore exploration activities,” Singapore’s Kim Heng noted.

“The number of utilised rigs in Asia is also on a downward trend, resulting in a decrease in demand for maintenance of rigs and related goods and services,” the company said.

It is now expecting its business to be “volatile and challenging through 2015.” Kim Heng said it will assess potential merger and acquisition opportunities going forward.

The Singapore-listed company also announced a sharp fall in profit for its financial year ended 31 December 2014.

Net profit for last year fell by 67% to SGD5.62m ($4.12m) from SGD17.09m in 2013.

Revenue also declined by 8% year-on-year to SGD77.98m due mainly to lower contributions from the offshore rig services and supply chain management segment, but partially offset by an increase in revenue from the vessel sales and newbuild segment.