MTQ books Q4 loss of S$6.53m from goodwill impairment charge

OIL and gas equipment and services provider MTQ Corporation recorded a net loss of S$6.53 million for its fourth quarter ended March 31, 2015, compared to a net profit of S$5.5 million in the year-ago period, due to a goodwill impairment charge of S$6.8 million arising from the Binder and Engine Systems' business.

Excluding the goodwill impairment, net profit would have been S$0.3 million in the fourth quarter, the company said.

Over the same period, revenue was 19 per cent lower at S$63.76 million, compared to S$78.89 million in the corresponding period last year due to weaker demand from oilfield engineering services in Singapore and Binder.

Gross profits declined by S$8.1 million, in line with the decrease in revenue, the company said.

For the full year ended March 31, 2015, the group's net profit was down 79 per cent at S$5.02 million while revenues was 6 per cent lower at S$295.64 million due to weaker demand from oilfield engineering services in Singapore, the absence of diving campaigns that boosted subsidiary Neptune Marine Services' FY2014 revenue and a weaker Australian dollar exchange rate in FY2015.

"The Singapore oilfield and Binder businesses are suffering from reduced activity levels and significant improvements are not expected in the short term. While oil prices will recover, the group anticipates that overall capital expenditure in our industry will reduce in the next financial year. Our focus will be on securing service opportunities as work on existing projects will continue. The group will remain vigilant on addressing its cost structure," it added.

For the quarter ended March 31, 2015, loss per share was 4.22 cents while net asset value per share was 83 cents.

A dividend of two cents per share was declared for the quarter.

On Monday, MTQ closed trading up 2.63 per cent at S$0.78.