The Group incurred higher distribution and selling expenses of S$2.4 million and higher administration expenses of S$1.6 million comprised mainly of handling more orders under the precision engineering business, O&G business expenses and corporate expenses for share options.

Operational expenses of around $1.0 million were also incurred for the O&G business.

Overall, the Group’s net profit attributable to shareholders was about S$0.7 million.

The Group had S$4.9 million in cash and cash equivalents as of 31 March 2018. Net asset value per share strengthened by 3.2% to 8.99 Singapore cents.

BUSINESS UPDATES AND OUTLOOK
In April 2018, the Group acquired a piece of land in Batam to build a factory and move its production to the new location. This new facility is to help meet expanded demand.

The Group has invested considerable resources in exploring the Trembul Operating Area, resulting in the discovery of commercially viable hydrocarbon resources at Well SGT-01.

Discussions are ongoing with various parties to finalise an agreement for offtake of this gas.

The Group has commenced exploratory activities in a nearby Well P1 and is waiting for results.

CEO Sydney Yeung is the largest shareholder of GSS Energy with his 18.28% stake. NextInsight file photo.Sydney Yeung, CEO of GSS Energy, said, “We look forward to delivering the Group’s profitability for FY 2018 based on the positive outlook for our precision engineering and O&G business model. "Our precision engineering business continues to provide steady income and profitability. The fully operational and expanded factory in Changzhou allows us to take on larger orders with greater production capability directing towards higher valued output. "In the O&G business, we are working to close the operational and financial arrangement to commercialise our fields at Trembul.”