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MTQ released their results for 1H FY 2010 (they have a March year-end) on October 28, 2009. Since the company only releases results every half-yearly instead of quarterly as they are below the S$75 million market capitalization threshold, this means that I will only be able to review the company’s performance every six months, barring any updates which the company may provide in the meantime. A pleasant surprise I got was a newsletter which the company sent out to all shareholders to provide updates on the Company – most companies I know do not do this and MTQ is certainly very shareholder-friendly in this respect. This is even though its shares are not very liquid and the company is relatively unknown.
My analysis will be split into the usual 3 sections as per my other analyses for my companies; and at the same time I will discuss briefly on prospects and plans.
Profit and Loss Analysis
As expected, revenues dropped 12% year on year from S$45.3 million in 1H 2009 to S$39.8 million in 1H 2010. This was due to softer demand for the Company’s oilfield engineering services as many oil and gas projects were put on hold as a result of the financial crisis and subsequent recession. Engine systems, however, remained relatively resilient and managed to slightly increase its revenue level (in AUD), but with a forex translation loss the net effect was a S$0.2 million decrease in revenue in SGD terms. Read more...[caption id="attachment_2604" align="alignright" width="150" caption="Photo by Hythe Eye"][/caption]
MTQ released their results for 1H FY 2010 (they have a March year-end) on October 28, 2009. Since the company only releases results every half-yearly instead of quarterly as they are below the S$75 million market capitalization threshold, this means that I will only be able to review the company’s performance every six months, barring any updates which the company may provide in the meantime. A pleasant surprise I got was a newsletter which the company sent out to all shareholders to provide updates on the Company – most companies I know do not do this and MTQ is certainly very shareholder-friendly in this respect. This is even though its shares are not very liquid and the company is relatively unknown.
My analysis will be split into the usual 3 sections as per my other analyses for my companies; and at the same time I will discuss briefly on prospects and plans.
Profit and Loss Analysis
As expected, revenues dropped 12% year on year from S$45.3 million in 1H 2009 to S$39.8 million in 1H 2010. This was due to softer demand for the Company’s oilfield engineering services as many oil and gas projects were put on hold as a result of the financial crisis and subsequent recession. Engine systems, however, remained relatively resilient and managed to slightly increase its revenue level (in AUD), but with a forex translation loss the net effect was a S$0.2 million decrease in revenue in SGD terms. Read more...
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MTQ released their results for 1H FY 2010 (they have a March year-end) on October 28, 2009. Since the company only releases results every half-yearly instead of quarterly as they are below the S$75 million market capitalization threshold, this means that I will only be able to review the company’s performance every six months, barring any updates which the company may provide in the meantime. A pleasant surprise I got was a newsletter which the company sent out to all shareholders to provide updates on the Company – most companies I know do not do this and MTQ is certainly very shareholder-friendly in this respect. This is even though its shares are not very liquid and the company is relatively unknown.
My analysis will be split into the usual 3 sections as per my other analyses for my companies; and at the same time I will discuss briefly on prospects and plans.
Profit and Loss Analysis
As expected, revenues dropped 12% year on year from S$45.3 million in 1H 2009 to S$39.8 million in 1H 2010. This was due to softer demand for the Company’s oilfield engineering services as many oil and gas projects were put on hold as a result of the financial crisis and subsequent recession. Engine systems, however, remained relatively resilient and managed to slightly increase its revenue level (in AUD), but with a forex translation loss the net effect was a S$0.2 million decrease in revenue in SGD terms. Read more...
