3
/ MTQ CORPORATION LIMITED /
ANNUAL REPORT
2014/2015
CHAIRMAN’S STATEMENT
For our Oilfield Engineering services, we have seen
weaker demand fromOEM equipment suppliers as their
order books are reduced by deliveries. With existing
facilities actively in production, demand for the subsea
maintenance-centric services provided by Neptune still
remains but pricing pressure has increased.
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
improve underlying performance. Good progress has
been made in Neptune and Bahrain.
Neptune consolidated operations in one single location
in Perth in May 2015 which means lower operating
costs. They have also made inroads in growing their
business outside of Australia and the UK. Another
area where we have made good progress is building
a stronger management team in Bahrain. We continue
to strengthen our workshop capability in Singapore
and Bahrain and look to maximize the benefits once
markets strengthen. In Bahrain, customer recognition
of our capabilities continues to grow. Our range of
services in Bahrain have expanded to include cladding
and surface coating. Our Australian Engine Systems
operations faces a weak industrial environment but
remains profitable. The challenge of developing
national consistency in service delivery remains.
Overall, the Group’s financial position remains healthy
which allows us to plan ahead to support existing
businesses. The Board is recommending a one-tier
final cash dividend of 2.0 Singapore cents per ordinary
share, which is subject to shareholders’ approval at the
forthcoming Annual General Meeting. This takes full
year dividends to 4.0 cents per share, similar to last
year. While this amounts to a higher level of payout
relative to earnings for the current year, it is supported
by the cash generatedwithin the businesses. Following
two years of bonus share issues, dividends have
effectively grown in recent years.
MTQ started business in Singapore in 1959 and like
all of Singapore, we will look back on 2015 as the end
of an era. The oil and gas industry has also entered a
downturn period and the recovery will be a gradual one.
In our many years of business operations, we have
experienced adverse market conditions. Our proven
strategy of staying focus on improving our customer
service quality and cost efficiencies will continue. This
focus has always enabled us to be in a stronger position
to reap full benefits when markets rebound.
I would like to thank all our customers and business
partners for their continuous support, and express my
gratitude to the management team and staff for their
hard work and dedication. I also want to thank the
members of the board for their service and counsel.
Last but not least, I want to thank all our shareholders for
their support. We remain optimistic about the prospects
for the Group in the year ahead and will continue to
focus on delivering long-term shareholder value while
growing our businesses.
Kuah Kok Kim
Chairman
