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Baker Technology LimitedAnnual Report 2014
OVERVIEW
Baker Tech recorded a net profit of $13.5 million for
FY2014 compared to a net profit of $22.4 million for
FY2013due to theabsenceof investmentgain inFY2014.
Excluding the investment gain, the Group’s net profit
stood at $13.5million and $13.6million for FY2014 and
FY2013, respectively.
TheGroup’s principal activity is in themanufacture and
provisionof specialisedmarineoffshoreequipment and
services for the oil and gas industry. Its latest product
offering features a state-of-the-art self-propelledmulti-
purpose jackup liftboat. The Group’s subsidiary Baker
Engineering Pte. Ltd. (“Baker Engineering”) completed
its design in 2014 and commenced the construction
of the liftboat at its Singapore yard with a strike steel
ceremony inNovember 2014, followedby keel laying in
February 2015.
While Singapore’s economy is expected to experience a
healthy 2 to 4 percent growth in 2015, theoutlook for the
offshore marine sector remains weak for the coming 12
months. TheUSeconomy projects higher growthbut this
is likely tobe temperedbyweakergrowth in theEurozone,
JapanandChinamarkets.Globaloffshoredrillersarefacing
a challengingenvironment asmanymajor international oil
companies rationalisecapital expenditure.
Baker Tech expects lower volatility in the oil production
maintenance segmentsand ispleased tohaveembarked
in this segment via its liftboat investment throughBaker
Engineeringtotapon itsopportunitiesand isprogressing
towards thedevelopmentofequipmentof itsowndesign
classof liftboats to serve to the relevantmarkets.
MARINEOFFSHORE
2014
$’000
2013
$’000
%
Change
Revenue
86,272 83,299
+4%
Net Profit
13,517 22,373 -40%
Net profit (excluding
investment gain)
13,517 13,616
-1%
With the decline in oil prices, the Group witnessed
a slowdown in order intake during the second half of
FY2014. As at 31December 2014, theGroup’s net order
book stood at US$30 million and these orders are
expected tobe completedwithin thenext 12months.
OPERATING
REVIEW
