SINGAPORE (July 25): MTQ, the regional engineering, maintenance and subsea services group, reported 1Q18 net loss widened to $3 million from $2.2 million a year ago.
Revenue fell 12% to $30.5 million revenue from a year ago.
This was due to lower activity in the Neptune segment.
Coupled with continued pricing pressure, gross profit fell 30% to $5.5 million.
MTQ says continuing cost rationalisation measures have led to a reduction in operating and staff costs by 15% compared to 1Q17.
Finance costs also declined by 26% as the group repaid $17 million of borrowings in 1Q18.
MTQ reported cash and cash equivalents of $19.78 million in 1Q18.
“Our Neptune segment recorded a slow start to the year on the back of reduced activity in Australia, reflecting the generally challenging business environment there. This has effected overall results. Notwithstanding this, most of the other businesses recorded slight improvements with the Middle East’s activity being the most robust,” says Kuah Boon Wee, CEO of MTQ.
“The road to recovery remains a challenging one and we remain focused on broadening our markets in this competitive environment as well as enhancing efficiency and utilisation,” he adds.
Shares of MTQ last traded at 40 cents on Tuesday.
