MTQ CORPORATION’S FY2015 profit attributable to shareholders may have taken a hit by 79% year-on-year to S$5.0 million, but the profit crunch did not stop it from maintaining its dividend payout.

400 Kuah Boon Wee 3"We will focus on improving our cost structure as demand has been muted by a lower rate of oil rig deployment," said Group CEO Kuah Boon Wee.
 NextInsight file photo
The oilfield equipment engineering services provider posted a decline in revenue by 6% year-on-year to S$295.6 million for FY2015 (year end March).

Its proposed final cash dividend of 2 cents per share, when added to its interim 2-cent dividend, translates into a yield of 5.2% based on a recent stock price of 77 cents.

It bottom line was affected by a goodwill impairment charge of S$6.8 million arising from its Binder and engine systems’ businesses.

Binder, an Australian pipe support and suspension solutions provider focusing on the oil & gas industry, was acquired by MTQ in January 2014.

“The goodwill impairment is a one-off item that arose partly because Binder’s business value had been indirectly affected by the fall in oil prices,” said Group CEO Kuah Boon Wee during a briefing for fund managers and analysts on Tuesday.

“The Singapore oilfield and Binder businesses are suffering from reduced activity levels and significant improvements are not expected in the short term,” he said.

Excluding the goodwill impairment, the Group would have posted profit attributable to shareholders of S$11.8 million.

On a more positive note, revenue from its oilfield engineering business in Bahrain nearly doubled to S$15.4 million.

Its Bahrain operation has gained market share, and margins have also improved.

MTQ's Neptune (subsea) business and engine systems business also remained profitable.

There is further positive news: Group's cash and cash equivalents increased from S$37.4 million to S$44.1 million, while net gearing decreased from 16.9% to 10.5%.

MTQ stock px 12.5.2015Market cap: S$119 million | Price-to-book 0.85X | Current price earnings 25.5X
Bloomberg data

Share Prices

Counter NameLastChange
AEM Holdings2.2700.050
Avi-Tech Electronics0.4400.020
Best World Int.1.360-
China Sunsine0.4550.010
CNMC GoldMine0.2600.005
CSE Global0.565-0.005
Eagle HTrust USD0.525-0.005
Food Empire0.750-0.015
Golden Energy0.1700.001
GSS Energy0.098-0.005
ISDN Holdings0.1990.001
JB Foods0.625-0.010
KSH Holdings0.4000.005
Moya Asia0.080-0.002
Nordic Group0.300-0.005
Oxley Holdings0.345-
REX International0.200-0.005
Sing Holdings0.410-
Straco Corp.0.570-
Sunningdale Tech1.290-0.010
Sunpower Group0.560-
The Trendlines0.1310.001
Tiong Seng0.2000.002
Uni-Asia Group0.690-
Yangzijiang Shipbldg1.0400.020

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 2828 guests and no members online