Report on MTQ recent 1Q result...
(not vested)
MTQ Corp posts 35% fall in 1Q earnings to $4.2 mil
MTQ Corp said earnings declined 35% to $4.2 million for 1QFY2015 ended June from $6.5 million a year ago as revenue fell 19% to $76.7 million. This translates into earnings per share of 2.75 cents for the first quarter.
The decrease in earnings was largely due to the absence of vessel campaign at Neptune Marine Services which had previously boosted revenue. Within the Oilfield Engineering segment, the Singapore business recorded lower sales while the group had a quiet start from the Binder Group.
However, MTQ said it managed to improve operating margins, notably in Neptune and in Bahrain. Overall gross profit margin increased to 34.0% in 1QFY2015 compared to 29.7% a year ago. In addition, the group continues to make progress in overhead reduction in Neptune which improved the overall results. Despite the enlarged business size of the MTQ Group, the staff costs and other operating expenses remained relatively stable in 1QFY2015. Redundancy costs in Indonesia, however, have resulted in a share of losses from the joint venture of $0.3 million.
In line with the decrease in revenue which is partially offset by higher gross profit margins, the profit before tax declined by 28% to $5.7 million y-o-y compared to $7.9 million in 1QFY2014.
MTQ’s balance sheet remained strong subsequent to the acquisition of Binder Group with a cash balance of $38.7 million (at end of FY2014: S$37.4 million) and a net gearing of 15.3%1 as at 30 June 2014 (at end of FY2014: 16.8%). The group continued to report positive operating cash flow of $6.3 million for 1QFY2015.
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