Investor Relations - News
Press Release - Metalock Delivers Handsome Interim Earnings Of S$3.84 Million, Posting A Turnaround Of 15 Times Over Comparative Period Results
SINGAPORE - 30 October 2002 - Mainboard-listed Metalock (Singapore) Limited today announced a profit before tax of S$4.26m on a turnover of S$23.21m for the first half of its financial year ended 30 September 2002. This compares favourably to the comparative half year result of S$0.60m on a turnover of S$21.29m in the last financial year. A net profit after tax of S$3.84m was achieved for the current half year against the half year comparative of S$0.24m in the previous year.
An exceptional gain of S$2.80m was registered after a S$3.84m gain from the sale of the Group's marine repair services division was offset by a S$0.68m provision for an investment.
Commenting on the half year results, Mr K.K. Kuah, Metalock's Chairman & CEO, said, "The Group is in good shape now. We have divested all unprofitable business units with the recent disposal of the loss-making marine repair services division in May 2002 being the last. The disposals had effectively led to the marked improvement in our earnings. Management attention and other resources can now be more efficiently devoted to the Group's three key operating divisions, namely the oilfield equipment repairs, subsea robotics as well as the turbocharger and fuel injection services divisions."
In fact, the operating businesses recorded an operating profit (before tax, minority interests and exceptional items) of S$1.46m for the half year ended 30 September 2002, surpassing the S$0.82m achieved over the corresponding period in the last financial year. This already represents 76% of the S$1.91m operating profit registered for the entire financial year ended 31 March 2002.
The first half of the financial year witnessed maiden profit contribution from the Group's subsea robotics division, which has now completed the first phase of its building program. Supported now by a fully operational fleet of six remotely operated vehicles ("ROVs"), particularly the two heavy work class Phoenix ROVs, the division is likely to record further contributions.
The subsea robotics operations also secured an alliance with Khalifa Algosabi Diving & Marine Services of Saudi Arabia and Hydrodive of South Africa, whereby one heavy work class Phoenix ROV has been permanently installed aboard an Algosabi ROV dive support vessel dedicated to work in West Africa. This is believed to be the first in West Africa and the alliance is set to capitalise on the current booming West African oil & gas industry through provision of low-cost, timely mobilizations to the West African clients' various offshore installations.
Meanwhile, phase two of the building program of the subsea robotics division continues with two mid-range Swift ROVs. The new ROVs will spearhead the division's venture into the Asian subsea market.
The turbocharger unit continued to deliver good margins in the current half year through its firm market leadership in Australia's independent turbocharger service industry. The performance of the Australian unit will be further enhanced in the coming months with the integration of its newly acquired fuel injection business.
The Group's oilfield equipment repairs operation is also bustling with activity. It has embarked on a systematic equipment renewal and upgrading programme to maintain our leadership position in the market. Such renewal and and upgrading will enable the division to increase the scope of its services to the customers, thereby widening its earnings base and further enhancing its profitability.
The Group is upbeat that it is now well on the healthy growth track. Barring unforeseen circumstances, the operating performance of the Group is likely to improve further in the second half.
The Directors have declared an interim dividend of 4% less tax to be paid in respect of the current financial year. The net dividend payment amounts to S$0.62m.
Metalock (Singapore) Limited Group specialises in engineering services, and is primarily involved in oilfield equipment repairs as well as the design, production and operation of subsea remotely operated vehicles. The Group also owns the leading independent turbocharger supplier and repairer in Australia. It has recently acquired a complementary fuel injection business.