The Singapore-listed company posted full year net profit of S$6m ($4.7m) compared to S$11.4m a year ago.

Viking O&M attributed the drop to an impairment loss of S$7.7m on an investment resulting from suspected financial irregularities in an investee company Marine Accomm.

Revenue for the year improved 19% year-on-year to S$95.2m. “The revenue and year-on-year growth for 2011 would have been higher had it not for the currency impact due to the weaker US dollars compared to 2010,” the company said.

Viking O&M believed that while new builds in the offshore segment will continue to grow, the marine industry is more challenging and especially so in China.

“Against the backdrop of global economic slowdown and market volatility, business conditions will continue to be challenging. As a result, increased competition is further expected and margin pressures will continue,” Viking O&M said.