Rig repair and maintenance yard Kim Heng Offshore & Marine Holdings has slipped into the red for 2015 as against a profit in 2014 as revenue plunged amid the weak offshore industry.

Net loss for the year ended 31 December 2015 was recorded at SGD4.93m ($3.5m) as against the profit of SGD5.62m in 2014, Singapore-based Kim Heng announced to the stock exchange.

The full year revenue plummeted by 34% year-on-year to SGD51.76m due mainly to lower contributions from its offshore rig services and supply chain management segment on project delays and low demand for maintenance of rigs.

“As oil prices remain low, downward pressure on offshore exploration activities has not alleviated and the demand for maintenance of rigs and related goods and services has not picked up,” Kim Heng commented.

“Given the current conditions in our operating environment, we expect our business to remain challenging in the next 12 months. We continue to actively explore diversification opportunities into the maritime and marine infrastructure sector,” the company said.

The group added that it will continue to assess potential merger and acquisition opportunities, backed by its strong cash position.