TheGroup
continuestoactively
pursuebusiness
opportunities
throughacquisitions
andstrategic
alliancestoprovide
additionalavenues
forgrowth.
DEAR
SHAREHOLDERS,
Onbehalfof theBoardofDirectors
(“Board”), I present toyouour annual
report for thefinancial year ended
31December2017 (“FY2017”).
2017was a yearwhen theoil
andgas industry entered a state
of convalescence.Worldwide
economicgrowth, geopolitical
upheavals culminated in improved
demand and recovery inoil prices,
amidst output cuts. Brent crude
oil prices ended2017 around
US$65/bbl, its highest since2015.
Whileprofitability is typically a
keymeasure, sustainability is just
as crucial. Theprotracted
downturn in theoil andgas
industry since2014, resulted in
widespread fall of companies, debt
restructurings and asset sales.
Baker Techadopts strategic
objectives tomitigateoperational
risksbycautiously reducingour cost
baseandcurtailingdiscretionary
expenditure. Themovehasproven
effectiveat a timewhenour peers
struggledwith strainedfinances.
Our strength lies ina sustainable
balance sheetwithnoborrowings.
In the year of review, Baker
EngineeringPte. Ltd. (“BEPL”),
a subsidiaryof theGroup,
reached a significantmilestone
uponcompletingconstructionof
its first state-of-the-art liftboat,
BlueTitanium. TheBEL320-
4R200S liftboat is thefirst in a
series of liftboat designs created
byBELDesignPte. Ltd., BEPL’s
wholly-owneddesign subsidiary.
We are alsopleased to share that
theGrouphas secured a time
charter contract for BlueTitanium,
tobedeployed in Southeast Asia
in the later part of 2Q2018 to
support rejuvenationworks for
oil andgas platforms for a
national oil company. This charter
is expected tocontribute to the
Group’s financial performance
for thefinancial year ending
31December 2018.
THEYEAR
INREVIEW
TheGroup’s revenuewasdown77%
year onyear at $5.0million, in view
of thegeneral slowdown inorder
intake fromaperiodof significant
capital expenditurecutsby theoil
andgas industry. Lower revenue
coupledby foreignexchange losses
resulted inanet lossof $10.7million
for theyear, as compared toanet
lossof $8.3million inFY2016.
Foreignexchange losses stood
at $4.0million for FY2017, arising
from theweakeningof theU.S.
dollar against Singaporedollar.
CHAIRMAN’S
MESSAGE
BAKER
Technology
L IMI TED
THE BE ST
I N US
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