Page 5 - ar2012

3
Annual Report 2012
CEO’s Statement /
BUSINESS REVIEW
OVERALL STRATEGY
MTQ has traditionally operated in two
sectors, the oilfeld engineering sector and
the engine services sector. Given the overall
macro environment we are in, MTQ intends
to continue its recent trend of focusing on
the oilfeld sector as the preferred source for
future growth.
With the acquisitions and start-ups we made
in the Oilfeld sector in the last 12 months,
we are striving to become a more diversifed
oilfeld services company focusing on
the needs of drilling contractors and oil
companies. Drawing on our traditional metal
working skills, our strategy is to develop
a more comprehensive range of services,
both geographically and functionally, so that
our potential work scope with our drilling
contractor customers can increase. We
made good progress in 2012 and will look to
do more moving ahead.
Our engine systems business remains an
important part of our overall Group. As a
distribution and service business in Australia,
it does operate on a set of diferent business
matrixes as compared to the oilfeld
business. We will continue to focus on
looking to become the only pan-Australian
wide business in this space. We will look for
acquisitions, but we will adopt a prudent
approach in pursuing them as the slower
growth prospects necessitate.
OILFIELD ENGINEERING
GOOD FUNDAMENTALS
The backdrop facing our business is of an
active market in oilfeld exploration, brought
about by underlying consumer demand and
a relatively stable oil price for much of the
year. The major Singapore shipyards have
consistently reported new additions to their
order pipeline of new rigs and increasingly
drillships, refecting Singapore’s continued
pre-eminence in the area of newbuilds and
repair. For our Singapore facilities, the long
term future is linked to Singapore remaining
the pre-eminent oil and gas hub for Asia.
Critically for us, ofshore rig utilisation in
the year has increased in most markets,
especially in the key MTQ markets of Middle
East and Asia.
Our oilfeld engineering services essentially
now cover 3 facilities, Pandan Loop and
Loyang in Singapore and in Bahrain. For the
year ended 31 Mar 2012, we recorded a 73%
increase in revenue to S$74.1 million. This
increase refects a steady stream of work
from our long established facility in Pandan
Loop, nine months’ revenue recognition
from the newly acquired Pemac facility in
“With the acquisitions and
start-ups we made in the
Oilfeld sector in the last 12
months, we are striving to
become a more diversifed
oilfeld services company
focusing on the needs of drilling
contractors and oil companies”
Kuah BoonWee
CEO
CEO’s
STATEMENT