Technics Oil & Gas Limited
Financials
UNAUDITED SECOND QUARTER FINANCIAL STATEMENT ANNOUNCEMENT FOR THE PERIOD ENDED 31 MARCH 2012
Financials Archive
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2012
Review of Performance
Consolidated Statement of Comprehensive Income Review - Q2 FY2012 ended 31 March 2012
The Group's revenue increased by S$14.80 million or 42% year-on-year ("yoy") to S$49.80 million in the second quarter ended 31 March 2012 ("Q2 FY2012") compared to the corresponding period of the last financial year ("Q2 FY2011") due to increased revenue contributions from subsidiaries.
Cost of sales increased by S$9.68 million or 45% to S$31.15 million in Q2 FY2012 in line with the increase in revenue.
Gross profit margin in Q2 FY2012 was lower at 38% compared to 39% a year ago. The margin decline was due to more CE (Contract Engineering) projects being recognized in Q2 FY 2012 that commands relatively lower margin.
Gross profit increased by S$5.13 million or 38% to S$18.66 million in Q2 FY2012 compared to S$13.53 million a year ago and gross profit margin eased marginally from 39% to 38% in Q2 FY2012. The margin decline was due to more CE (Contract Engineering) projects being recognized in Q2 FY2012 that commands relatively lower margin.
The Group achieved profit after tax of S$8.29 million before non-controlling interest for Q2 FY2012, as compared to S$4.82 million in Q2 FY2011.
Basic and diluted earnings per share for Q2 FY2012 were 2.92 Singapore cents.
Operating expenses
Finance costs decreased by S$0.09 million or 26% yoy in Q2 FY2012, mainly due to lower utilisation of bank trade facilities.
The Group's administrative expenses increased by S$2.89 million or 56% yoy in Q2 FY2012, attributable to the administrative expenses of the new subsidiaries, which were acquired during FY2011.
Other charges
The Group recorded other charges of S$0.93 million in Q2 FY2012, mainly due to the unrealised loss in foreign exchange and provision for impairment of trade receivables.
Consolidated Statement of Comprehensive Income Review - Six Months ended 31 March 2012
The Group's revenue increased by S$27.79 million or 48% year-on-year ("yoy") to S$85.13 million in the six months ended 31 March 2012 ("1H FY2012") compared to the corresponding period of the last financial year ("1H FY2011") due to increased revenue contributions from subsidiaries.
Cost of sales increased by S$18.62 million or 53% to S$53.54 million in 1H FY2012 in line with the increase in revenue.
Gross profit margin in 1H FY2012 was lower at 37% compared to 39% a year ago.
Gross profit increased by S$9.17 million or 41% to S$31.58 million in 1H FY2012 compared to S$22.41 million a year ago and gross profit margin eased marginally from 39% to 37% in 1H FY2012. The margin decline was due to more CE (Contract Engineering) projects being recognized in 1H FY2012 that commands relatively lower margin.
The Group achieved profit after tax of S$12.54 million before non-controlling interest for 1H FY2012, as compared to S$7.85 million in 1H FY2011.
Basic and diluted earnings per share for 1H FY2012 were 4.97 Singapore cents.
Operating expenses
Finance costs decreased by S$0.04 million or 7% yoy in 1H FY2012, mainly due to lower utilisation of bank trade facilities.
The Group's administrative expenses increased by S$5.76 million or 60% yoy in 1H FY2012, attributable to the administrative expenses of the new subsidiaries, which were acquired during FY2011.
Other charges
The Group recorded other charges of S$1.45 million in 1H FY2012, mainly due to the loss from foreign exchange and provision for impairment of trade receivables.
Statement of Financial Position Review (as at 31 March 2012 compared to 30 September 2011)
Cash and cash equivalent
Cash and cash equivalent decreased marginally by S$0.05 million to S$20.72 million as at 31 March 2012 from S$20.77 million as at 30 September 2011.
Other Assets
Other Assets increased by S$8.29 million or 25% to S$41.93 million as at 31 March 2012 from S$33.64 million as at 30 September 2011, mainly due to the subsidiary's ship building business where costs were incurred upfront and billings can only be done upon delivery of vessels.
Trade and other receivables
Trade and other receivables increased by S$1.20 million or 4% to S$31.18 million as at 31 March 2012 compared to S$29.98 million as at 30 September 2011, mainly due to progress billings for the Group's EPCC projects.
Property, plant & equipment
Property, plant & equipment increased by S$10.55 million or 31% to S$44.67 million as at 31 March 2012 from S$34.12 million as at 30 September 2011 mainly due to capitalization of vessels from finance lease receivables arising from the cancellation of finance lease arrangement.
Other financial liabilities
The decrease in other financial liabilities by S$3.83 million or 9% to S$37.46 million as at 31 March 2012 from S$41.29 million as at 30 September 2011 was mainly due to repayment of bank borrowings.
Trade and other payables
Trade and other payables increased by S$16.08 million or 59% to S$43.41 million as at 31 March 2012 from S$27.33 million as of 30 September 2011 due to the increase in progress billings from suppliers for procurement of materials for the Group's major EPCC and CE projects.
Gearing Ratio
The gearing ratio (total debts / net tangible assets) has decreased to 0.61 as at 31 March 2012 as compared to 0.84 as at 30 September 2011 due to decrease in total debts.
Commentary on Prospects
As of 11 April 2012, the Group has a total outstanding order book of about S$95.50 million for progressive delivery through to 1H FY2013.
These project schedules are typically subject to changes that could be due to various factors, e.g. customers requesting variations to original project specifications, or adjustment to shipment schedules by overseas manufacturers of major equipment, notably premiumbranded engines of non-standard specifications.
Our customers, who are mainly, oil and gas majors, leading FPSO operators and end-users, maintain longer term perspectives on their operation requirements that are not affected by the fluctuation of oil prices. Hence, they are continuing with the previously agreed schedules for the delivery of contracts awarded to us.
Pipeline projects within the regional market for which the Group has already submitted proposals, or is continuing to follow up with prospective customers, are proceeding and indicative timelines are remaining on-track.
Nevertheless, given the extent of the global credit crunch that has impacted the world's major economies; the Group remains alert on new challenges that may arise in its external environment.
In view of the sizeable order book, current yard schedules and the expected completion of our expanded yard space and new in-house facilities in early next year, barring unforeseen circumstances the Group is anticipating a better performance for FY2012 compared to FY2011.