MTQ Corporation

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Financial Review

3QFY2018 losses narrow amid challenging market
 Improvement in Oilfield Engineering segment but Subsea activities remain
subdued

The Group reported S$28.2 million revenue for 3QFY2018, a decrease of 10% year-on-year.
The Group’s gross profit margin for the quarter was 16.3% reflecting competitive pricing
pressures.
The Group’s efforts in cost cutting continue to yield positive results which saw the Group’s
other operating expenses and staff costs reduce as compared to the prior periods. Finance
costs also declined due to the lower borrowings during the year. Share of joint venture results
was weaker mainly due to certain tender processes taking longer than expected.
Overall, the Group’s losses from continuing operations narrowed slightly on the back of better
results from the Oilfield Engineering segment. The subsea businesses in Australia remained
subdued.

Results & outlook
Commenting on the financial results and outlook, Mr Kuah Boon Wee, Group Chief Executive
Officer said,
“In our oilfield engineering segment, we recorded a modest improvement for the
quarter and the level of inquiries is more encouraging. Our Subsea Service business
recorded a weak quarter and while general sentiment is improving, regaining
profitability will take more time. Our marketing efforts are focused on targeting the
Middle East and Southeast Asia areas.
While our net debt gearing remains very modest, we are conscious that we have yet to
return to profitability as a Group. That said, improving market sentiments will also
generate opportunities. Thus the Group will look to further strengthen its financial
position through this prolonged downturn.”
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
For the Rights issue,

Both, Senior & Junior Kuah(s) signed up for their allotment till date.
Show of confidence sir...

Smile
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
They need to. Otherwise the confidence of all stakeholders -- and eventually the business -- will mirror the current share price trend. Because obviously OPMI has not demonstrated optimism.

How long will the industry remain oversupplied, and can MTQ survive to see the next boom? For that matter, will oil prices recover to its former high, or high enough for MTQ's services to be relevant?

It could be a few more years before the bleeding stops. Its profitability thereafter is also uncertain.

A large margin of safety and long time-horizon is necessary.
Reply
(30-10-2017, 06:41 PM)karlmarx Wrote: 2 years of bad results and it is not over yet...Is the oil and gas industry recovery truly in sight?

http://infopub.sgx.com/FileOpen/MTQ_2Q18...eID=475890
I suppose it will be placed into the watch list after the rights issue?
Reply
MTQ should report its FY17 results sometime in May. And it is unlikely that it will turn a profit for the full year. Which makes for losses in FY15, 16 and soon-to-be 17. But whether it enters the watch list will also depend on its market cap.

The rights issue will likely raise the market cap. Whether it can stay above the required $40m average over 6 months depends on whether there is demand for its shares.
Reply
Not easy for them... the space they are in, still bleeding deep...
Reply
Warrant is 20cents and exercise price is 22 cents.
Current mtq is 20cents


Sent from my SM-G930F using Tapatalk
Reply
(10-04-2018, 01:10 PM)Kelvin Wrote: Warrant is 20cents and exercise price is 22 cents.
Current mtq is 20cents


Sent from my SM-G930F using Tapatalk

yes, reflected the poor sentiments of the co., the O&G slump is still not recovering... so that's being realistic...
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
(10-04-2018, 01:10 PM)Kelvin Wrote: Warrant is 20cents and exercise price is 22 cents.
Current mtq is 20cents


Sent from my SM-G930F using Tapatalk

yes, reflected the poor sentiments of the co., the O&G slump is still not recovering... so that's being realistic...
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
Slight misinformation. Warrant is 22 cents, right is 20 cents. I just recently exercised the rights
Reply


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