This article first appeared in The Edge Financial Daily, on April 21, 2016.

KUALA LUMPUR: TAS Offshore Bhd, which saw two contract terminations amounting to RM151.46 million recently, slipped into the red with a net loss of RM13.4 million in its third quarter ended Feb 29, 2016 (3QFY16), due to an impairment loss on trade receivables and provision for the termination of contracts, which TAS Offshore is still disputing.

In the same period last year, it recorded a net profit of RM676,000.

The group’s revenue for 3QFY16 also shrank 77.2% to RM16.98 million from RM74.37 million a year ago, according to TAS Offshore’s filing with Bursa Malaysia yesterday.

TAS Offshore announced earlier this month that it was planning to initiate legal action against Abu Dhabi-based QMS 1 Offshore Services Ltd (QOSL) after the latter terminated another shipbuilding contract, one worth RM45.74 million, bringing the total value of contracts terminated by QOSL to RM151.46 million.

The announcement came a month after TAS Offshore said it received a notice from QOSL to terminate its contracts to build two units of anchor handling tug supply vessels for US$13.5 million each.

As for its nine-month period ended Feb 29, 2016 (9MFY16), the group reported a net loss of RM3.06 million as opposed to a net profit of RM10.3 million in the corresponding period last year.

Its 9MFY16 revenue fell 36.2% year-on-year to RM128.8 million from RM202 million.