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ANNUAL REPORT
FY2013/2014
BUSINESS REVIEW
OILFIELD SERVICES
MTQ Group (“MTQ” or “the Group”) recorded an
improved performance for the year in both the Oilfeld
Engineering segment as well as in the Neptune Marine
segment.
OILFIELD ENGINEERING – QUALITY
GROWTH
The Oilfeld Engineering business comprises our
engineering facilities in Pandan Loop and Loyang in
Singapore, our facility in Bahrain and as from January,
the Binder Group with facilities in Perth, Australia and
Jakarta, Indonesia. General sentiment in our business
areas is healthy, with offshore drilling and exploration
activity continuing to remain robust. Activity is
particularly strong in Saudi Arabia where rig counts
have risen signifcantly over the last 12 months. Within
South-East Asia, depleting reserves and falling outputs
drive renewed focus on new drilling programmes,
increasingly propelled by national oil companies.
Our Bahrain revenues continue to increase steadily. We
have successfully built recognition of our capabilities
from the key economic sectors of drilling contractors,
drilling equipment suppliers and shipyards.We recorded
revenue of S$8.5 million for the fnancial year though
proftability for the year remained elusive, albeit with
losses narrowing. However, the challenge of developing
the necessary manpower expertise is an ongoing one
as we enter into our fourth full year of operations. The
amount of regular work we are now securing from
established OEMs is a positive sign. Better performance
will come from improved supervision and on-the-job
experience.
In Singapore, our workshop activity in Loyang continues
to operate at high levels of utilisation. Core strengths
of quick turnarounds and quality execution continue
to enable us to support our customer needs. However,
reducing manufacturing manpower quotas reduce the
effect of productivity gains from new capital equipment.
Our agency business faces structural changes as two
signifcant agency brands that we represent were sold
to new owners during the year, with the likelihood
that our role moving ahead will be that of a regional
GROUP CEO’S STATEMENT
Overall, our Oilfeld Engineering and Neptune
Marinebusinessesaremakinggoodprogress
in helpingMTQGroup to develop its presence
as a specialist subsea service provider of
choice in its chosen markets. Our strategy
remains to develop a more comprehensive
range of services, both geographically
and functionally, so that our potential work
scopes with our oil and gas customers can
increase.
Kuah Boon Wee
Group Chief Executive Offcer