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Baker Tech back in the black in Q3 following acquisition
MANUFACTURER and provider of specialised equipment and services for the oil and gas industry Baker Technology swung into the black with a net profit of S$25.8 million in the third quarter ended Sept 30, reversing from a loss of S$3.5 million a year ago.
This came on the back of the acquisition of CH Offshore (CHO), in which the group recorded a provisional negative goodwill of S$24.8 million.
Revenue also jumped to S$11 million in Q3 from S$826,000 previously, due mainly to charter income.
Q3 earnings per share stood at 12.74 Singapore cents, compared to a loss per share of 1.74 Singapore cents previously .
No dividend was declared for the quarter.
As a result of the group's acquisition and consolidation of CHO, its financials will be impacted by the performance of CHO.
With oil prices continuing to stabilise around US$70 per barrel, oilfield activities appear to have increased, said the group.
However, charter rates are expected to remain flat in the near term as a result of oversupply. In addition, new build activity has remained muted.
The group said that it will continue to be prudent to ensure long-term sustainability in its operations.
Separately, the company announced that executive director Jeanette Chang will be appointed the CEO of the company with effect from Jan 1, 2019. She has held the executive director position since 2013.
She will succeed her father Benety Chang, who has held the position since 2000. Dr Chang will relinquish his position as CEO on Dec 31 but will remain executive director of the company.