Baker Technology LimitedAnnual Report 2014
47
Although order in-take showed signs of slowing down in the second half of 2014 due to the drop in oil prices,
Group revenue still improved to above the $20millionmark for 3Q2014 and 4Q2014, due to increased shipments to
customers for existingorders.
Gross profit margins varied depending on the product mix and stages of construction of the projects being
undertaken during the various quarters. Gross profit margins remained relatively consistent during 2014 and
they range from 23% to 29%. Notably, gross profit margin were higher at 42% in 4Q2013 due to improvements in
productionefficiency for certainprojects.
TheGroup’s pre-tax profits for 3Q2014 and 4Q2014werehigher thanearlier quarters due tohigher revenue aswell
as higher exchange gains from the sharp appreciation of the US dollar against the Singapore dollar during these
periods. The surge in pre-tax profits to $12.2million in 2Q2013 was due to the recognition of gain on disposal of
investments inDiscoveryOffshoreS.A. ($8.8million).
