Global Offshore Services Reports Widened Net Loss in Q1, Acquires New Vessel
Global Offshore Services Limited (GOSL) reported a net loss of Rs 476.29 lakhs for Q1, up from Rs 193.70 lakhs in the same quarter last year. Revenue declined by 49% to Rs 425.38 lakhs. The company acquired a new Anchor Handling Tug Supply Vessel and converted 70,000 warrants into equity shares. GOSL continues to face legal challenges regarding expired corporate guarantees worth USD 13.5 million, which it is contesting.
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Global Offshore Services Limited (GOSL) has reported a significant increase in net loss for the quarter ended June 30, amid declining revenue and ongoing legal challenges. The company also announced the acquisition of a new vessel and the conversion of convertible warrants into equity shares.
Financial Performance
GOSL reported a standalone net loss of Rs 476.29 lakhs for Q1, compared to a net loss of Rs 193.70 lakhs in the same quarter last year. The company's revenue declined sharply to Rs 425.38 lakhs from Rs 838.63 lakhs year-over-year, representing a decrease of approximately 49%.
| Particulars (in Rs. Lakhs) | Q1 Current | Q1 Previous | % Change |
|---|---|---|---|
| Revenue | 425.38 | 838.63 | -49.27% |
| Net Loss | -476.29 | -193.70 | +145.89% |
The company's total expenses for the quarter stood at Rs 970.71 lakhs, with fleet operating expenses of Rs 347.06 lakhs and depreciation and amortization expenses of Rs 295.42 lakhs being the major contributors.
Operational Updates
During the quarter, GOSL acquired one Anchor Handling Tug Supply Vessel (AHTSV). The company announced that this vessel received a Letter of Award (LOA) for a contract after the end of the quarter, potentially contributing to future revenue streams.
Capital Structure Changes
GOSL reported that 70,000 convertible warrants issued to non-promoters were converted into equity shares during the quarter. This conversion resulted in an increase in the company's paid-up share capital from Rs 30.64 crores to Rs 30.71 crores.
Legal Challenges
The company continues to face legal challenges regarding expired corporate guarantees worth USD 13.5 million. These guarantees were issued on behalf of its erstwhile subsidiary, Global Offshore Services B.V. (GOSBV), to Mt. Kailash S.A.R.L. for USD 6 million and Ocean Clap Shipping Ltd for USD 7.50 million.
GOSL is contesting a verdict by the High Court of Justice Business and Property Courts of England and Wales Commercial Court, which ruled against both GOSBV and GOSL as the guarantor. The company maintains that the guarantees had expired prior to the filing of the claim and that the guarantee holders had agreed in writing that the guarantees were cancelled before expiry.
The company is considering filing a counter-claim and criminal charges against the guarantee holders and their directors, as well as the directors of their parent company. Due to the expiration of the guarantees in 2021, GOSL has not recognized any provision for these in its books.
Corporate Governance
The company's Board of Directors approved the unaudited financial results for Q1 at a meeting held on August 12. Additionally, GOSL has scheduled its 47th Annual General Meeting for September 30, to be conducted via video conferencing.
As Global Offshore Services Limited navigates through challenging market conditions and legal issues, the company's focus on acquiring new assets and resolving outstanding legal matters will be crucial for its future performance and financial stability.
Historical Stock Returns for Global Offshore Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.24% | +7.03% | +3.80% | -3.94% | -12.72% | +1,170.00% |
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