CHAIRMAN’S
STATEMENT
2
DEAR SHAREHOLDERS,
For the financial year ended 31 March 2015, MTQ Group
(“MTQ” or “the Group”) recorded revenue of S$295.6
million, a drop of 6% from the previous year. Profit
attributable to shareholders declined to S$5.0 million,
which included goodwill impairment charges of S$6.8
million. This year saw a full year’s recognition from
our Australian-based subsidiary, Binder Group Pty
Ltd (“Binder”). Positive operating contributions were
recorded by all business units excluding Binder with
Bahrain recording a full year operating profit. Binder
has recorded losses throughout the year as it secured
significantly lower revenues than anticipated. This has
reduced the overall Group results.
The year was really one of two halves. In the first half,
the Group carried on from the trend of the previous
year with steady profits but from the third quarter
onwards, weakening demand led to a steady decline in
revenues in Singapore. This trend coincided with the
commencement of the fall in the oil price which started
in October 2014.
I have frequently reminded all that the oil and gas
industry is a cyclical business and the positive trending
period which lasted up to late last year represented
a strong upward phase. Regrettably, the inevitable
correction has arrived and the oilfield business will now
be in a negative phase for the foreseeable future. That
said, the world’s demand for fossil fuel is consistent
and growing and thus the long term prospects for our
Oilfield Engineering and Subsea Services businesses
remain positive.
We are encouraged that underlying activity in our core
markets of Asia and the Middle East remain steady.
Most of the recent reduction in rig deployment is
happening elsewhere in the world, notably in the US,
where rig counts have fallen significantly from peaks in
the middle of 2014. In contrast, international rig counts
have fallen by lesser amounts in the same period. US
shale oil production has also started to fall from April
2015.
“Positive operating contributions were
recorded by all business units excluding
Binder with Bahrain recording a full year
operating profit.”
Kuah Kok Kim
Chairman
