still got positive operating cashflows, so means they can tahan, watch out for that though...
can "tong" for at least 4Qs/6Qs no problem...
Proposed Disposal Of The Entire Issued and Paid-up Capital of MTQ Engine Systems (Aust) Pty Ltd To Bapcor Limited -
http://infopub.sgx.com/FileOpen/MTQ_SPA....eID=423567
Estimated selling price is S$17.6M which will raise NTA to 68cents/share and reduce net gearing to 1.4%.
The Engine systems business has been producing revenue close to S$50M and operating profits between S$1-2M for the past 4 years.
At $1.6M(FY16 operating profit), business was sold at 11x earnings. A fair price imho.
(vested)
start selling off assets for cash.... looks like a formula for delisting soon...
2QFY17 losses due to prevalent weakness in activity
* Depressed activity levels in the oilfield and subsea sectors continue
* Improved Bahrain performance despite pricing pressures
* Proposed disposal of Engine Systems division, strengthening balance sheet
Mr Kuah Boon Wee, Group Chief Executive Officer said,
"We continued to see weak subsea demand in all operating areas except in the Middle East where activity remains robust.
We will look to focus on growing our business in the Middle East. Overall recovery will require an improvement in activity levels, especially in the South East Asia/Australia region, where sentiment remains muted.
While we remain attentive to cash conservation and labour utilization, the disposal of the Engine Systems business will help to further improve the balance sheet, weather the current down-turn and capitalise on new opportunities."
2QFY17 results :
http://infopub.sgx.com/FileOpen/MTQ_2QFY...eID=426721
Mmm... MTQ brought a valve company, and started share buy-backs,
start to monitor,
"The industry is still in the early stages of a slow recovery and this is expected to persist into 2018. Nonetheless, the Group sees significant interest by oil companies to plan ahead for new projects as
depletion of existing resources continues and costs fall. The Group's financial position and net debt gearing remain sound as it continue to maximize opportunities and boost utilisation."
slow turn i guess? :O
if compared with Mencast holding. MTQ financial result seem much better.
After another loss making quarter both in P&L and cash flow, MTQ has finally resolved to an equity raising exercise.
http://infopub.sgx.com/FileOpen/MTQ%20-%...eID=487082
It is likely due to the 10+mil in debts that has to be repaid soon. It seems even one of the stronger O&G company is also struggling to fight the downturn