MTQ S$0.5m in the red for Q2; revenue down 28%

Singapore

ENGINEERING, maintenance and subsea services group MTQ Corp sank into the red with a net loss of S$501,000 for the quarter ended Sept 30, compared to a profit of S$5.28 million for the corresponding quarter a year ago.

Revenue declined 28 per cent year on year to S$57.82 million on the back of weak demand for its oilfield engineering business, especially in Singapore. Meanwhile, revenue from Bahrain was slightly higher year on year. Its engine systems' operating performance was stable, although the weaker Australian dollar weighed on revenue. Loss per share came to 0.32 Singapore cent, down from earnings per share of 3.46 cents.

For the quarter under review, weaker gross margins remained a challenge, in line with market pressures. Gross profit fell 43 per cent to S$15 million, while gross profit margin fell to 26 per cent for the quarter, vis-a-vis 33 per cent a year ago.

To combat the softer outlook, the group continues to cut operating expenses and staff costs both on a quarter-on-quarter and year-on-year basis.

No dividend was recommended.

The counter closed at 56 Singapore cents on Thursday, down half a cent.