Mencast reveals strong 2Q with 43% more revenues

Plus an unusual dividend declaration.

Energy and oil company Mencast delivered a strong 2Q14, with management achieving its aim of increasing capacity utilisation and has secured long-term contracts from oil majors in its energy services segment.

A report by RHB reveals that Mencast’s core earnings (excluding forex) of $6.4 million came on the back of higher revenues from all its three business segments.

Mencast also won $39.5 million of contracts in 2Q14, given that revenue this quarter was $43.9 million.

The company also performed an unusual exercise in declaring a 3-cent dividend (1-cent ordinary, 2-cent special) and then performing a 1-for-5 rights issue at $0.20 per rights share, in effect giving shareholders a choice between a subsidised rights issue or to keep the dividend and then be diluted.