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MTQ Corporat ion Limi ted Annual Repor t 2012/13 5
GROUP CEO’S STATEMENT
Neptune has now enabled the Group to provide a much more
comprehensive range of services to oil companies. Neptune
recorded its frst contribution for the fourth quarter of FY2013,
generating revenues of S$58.9 million, boosted by several
major projects within the diving business for customers like
Modec and eni. These projects include third party vessel
hire. Such campaigns allow us to secure higher revenues
for the year, though it is important to highlight that the nature
of such works is ad-hoc in nature. Within Neptune, we will
continue to push the drive of improving operating proftability.
Plans to streamline office locations in Perth and Singapore
will be implemented.
Within the overall Oilfeld Engineering business, we have
continued to reinvest into the business in the form of capital
equipment and improvements. We expect this trend to
continue, particularly with the Neptune businesses. We will
be looking at upgrades and new additions in certain growth
areas. With our older workshop facilities in Aberdeen and
Singapore, we remain committed to progressively upgrade
our facilities and ensure that they continue to be able to
service the needs of our oil and gas customers.
ENGINE SYSTEMS
The Engine Systems business in Australia recorded modest
sales growth for the year but managed to increase overall
segment profts to S$3.5 million, a signifcant increase for the
year. Tight cost management contributed to the improvement
in the overall profts of the business. However, the revenue
numbers illustrate the fact that the general fuel injection
and turbo charge business faces a challenging consumer
environment. We continue to seek growth opportunities in
the resource sector where the outlook still looks promising
while looking to work with OEMs on a national basis. Cost
control remains the key towards achieving a decent return on
total investment to date.
PEOPLE
Finding good people continues to be an important priority
for businesses, particularly in technical industries like oilfeld
services and engine systems where new joiners seem
reluctant toembrace. In the last twoyears, wehavesignifcantly
grown our staff, organically and through acquisitions to 800
full-time employees, with Singapore still retaining the highest
component. Retaining and developing this pool of talent is
important for companies like MTQ. We are pleased that staff
retention, following the Premier Group acquisition, has been
healthy and we will work harder to ensure that we achieve
the same result with the Neptune acquisition. As part of our
efforts in this area, I welcome Mr. Tan Chee Keong, who
has joined us as our Group Human Resources Director. We
will also look to strengthen our team in the area of human
resources management.
In Singapore, the manpower crunch is a very real one facing
businesses like ours, particularly within the engineering
workshops. Given that government measures to restrict the
growth of foreign workers in Singapore are set to remain, the
Group has to work harder at retaining existing and attracting
new employees. The Group remains committed to a policy of
sharing the rewards with the workforce, so that interests are
aligned across stakeholders. We embrace re-employment
and are keen to enhance the working lives of our employees.
We will continue to invest in new equipment in our production
capabilities to boost manpower productivity at our facilities
where prudent. Government incentives continue to remain
helpful in these areas. Notwithstanding all these efforts,
the reality of the manpower landscape is curtailing growth
opportunities in Singapore, especially as we grapple with an
ageing workforce.
In Bahrain, we have grown our staff strength to about 110 staff.
Our strategy here remains to source local candidates and
train them at our facility while augmenting overall numbers by
recruitment from overseas for experienced and managerial
positions. It has proven to be a challenge to attract the right
sort of supervisory management we need and we continue to
focus on fnding people with the right caliber.
In Neptune, the last eighteen months has seen a fair amount
of internal organisational change. That period has now
passed and the focus ahead is on retaining, developing and
attracting new joiners into the business to support growth
moving ahead.
SAFETY AND COMPLIANCE
Safety in the work place is important. The nature of our work
in heavy oil and gas engineering poses inherent risks which
need to be actively managed. Through Neptune, we have
secured the capabilities of an experienced Health Safety
Environment framework and processes which we will look
to implement in other Group entities. We have also recorded
another full year of zero reportable accidents at our main
facility in Pandan Loop. In the course of this past year, our
facilities have been successfully audited by industry bodies
such as DNV, ISO and API. We have also been regularly
audited by our customers to ensure compliance with industry
regulations and procedures. This is an important area of
emphasis that needs to constantly remain at the forefront of
all that we do.
KUAH BOON WEE
Group Chief Executive Officer