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ANNUAL REPORT
FY2013/2014
DEAR SHAREHOLDERS,
MTQ Group (“MTQ” or “the Group”) has recorded a
strong performance this year. For the fnancial year
ended 31 March 2014, the Group increased revenue by
50% to S$313.3 million and boosted proft attributable to
owners of the Company by 57% to S$24.2 million. This
year saw a full year’s recognition of the contributions
from our Australian-based subsidiary, Neptune Marine
Services Limited (“Neptune”). Positive contributions
were recorded by most of the other business units, with
Bahrain also improving its performance.
Overall prospects for our Oilfeld Engineering business
remain positive and encouraging, though the general
macroeconomic environment remains uncertain. The
key driver for our businesses is continued demand
for drilling and exploration for oil and gas in our key
regional markets of South-East Asia, Australia and the
Middle East. Within Asia, with declining outputs in key
countries, notably Indonesia and Malaysia, we have
seen national oil companies stepping up new activity.
Rig counts have also increased in the Middle East quite
signifcantly in recent years, notably in Saudi Arabia.
For our Oilfeld Engineering services, this means that
demand from drilling contractors and OEM equipment
suppliers have been healthy. With new and ageing
facilities actively in production, demand for the subsea
maintenance-centric services provided by Neptune has
also been forthcoming. Domestic industrial demand in
Australia has been weak and that has hampered our
growth aspirations in the Engine Systems business.
Having successfully enlarged our footprint, both in
terms of products and range of services in recent years,
a key challenge for the Group this past year was to
integrate business operations and improve underlying
performance. Good progress has been made but much
work remains, particularly in Neptune and Bahrain.
Manpower is another area where we have focused on.
Retaining and developingmanpower is a perennial issue
facing all companies, but particularly in more traditional
sectors that MTQ is operating in. We have managed
CHAIRMAN’S STATEMENT
Overall prospects for our Oilfeld Engineering
business remain positive and encouraging,
though the general macroeconomic
environment remains uncertain. The key
driver forourbusinesses iscontinueddemand
for drilling and exploration for oil and gas in
our key regional markets of South-East Asia,
Australia and the Middle East.
Kuah Kok Kim
Chairman