MTQ’s 3Q15 profits crash 66% to $2.2m

Due to weak Singapore and Australian offshore markets.

Revenue slowed on the recent oil market dislocation, with the Binder Group still marginally loss making.

According to a report by OSK-DMG, MTQ’s 3Q15 PATMI was a miss at SGD2.2m (-59% QoQ, -66% YoY).

Margins held relatively steady, with the improvements in Bahrain offsetting the weakness in Singapore. Its strong cash flows and balance sheet should support the dividend.

MTQ has taken measures to reduce overheads by implementing a temporary 10% pay-cut for Binder group employees.

Here’s more from OSK-DMG:

In the near term, we expect the current situation to persist and operations in Singapore to remain weak. We slash net profits by 34%/36% for FY15/16F. In 1QFY16, Neptune’s various operations will be consolidated at a single facility in Perth, which we see reducing group overheads by c.SGD5-7m annually from 4QFY16 onwards as the older leases expire.