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DEAR
SHAREHOLDERS,
On behalf of the Board of
Directors (“Board”), I am pleased
to present to you our annual
report for the financial year
ended 31 December 2018
(“FY2018”).
2018 was an eventful year for
the Group. The state-of-the-
art DP2 Liftboat, Blue Titanium,
designed and built by Baker
Engineering Pte. Ltd. and owned
by BT Titanium Pte. Ltd., a
wholly-owned subsidiary of
Baker Tech, was deployed during
the second quarter of 2018.
The Blue Titanium is currently
on a time charter supporting
rejuvenation works for oil and
gas platforms for a national oil
company. The Liftboat provides
offshore workers with top-tier
accommodation services and a
walk-to-work gangway, and also
has an on-board pedestal crane
with a lifting capacity of up
to 300MT.
Between July and September
2018, Baker Tech, through
its subsidiary BT Investment
Pte. Ltd. completed a 54.98%
acquisition of vessel owning and
chartering and ship management
company, CH Offshore Ltd.
(“CHO”). The acquisition is in line
with the Company’s strategy of
exploring strategic opportunities
and partnerships to extend
its reach into new markets in
order to enhance returns for
shareholders.
The Company also announced
the appointment of Ms Jeanette
Chang as the Chief Executive
Officer (“CEO”) from 1 January
2019 as part of the Company’s
effort to adopt sustainable
organisational development
through leadership transition.
Dr Benety Chang, who has held
his position as CEO since 2000
remains as an Executive Director
of the Company.
2018 ended on an uncertain
note with a reversal of the year
to date gains in Brent crude oil
prices in the last quarter of 2018.
Brent prices broadly trended
upwards from approximately
US$66/bbl at the start of the
year, reaching a high of US$86/
bbl in early October 2018 and
falling rapidly to close around
US$50/bbl by the end of the year.
The sharp drop in oil prices was
attributed to a more rapid than
expected increase in supply as oil
producing countries increased
production to compensate for
reducing supplies from Iran as a
result of pending US sanctions.
In addition, shale oil production
in the US increased quickly
with world crude inventories
rising in fourth quarter of
2018 despite global supply
fast outpacing demand. The
volatility in oil prices as well
as potential geopolitical risks
continued to weigh on final
investment decisions and capex
commitment for exploration and
production activity.
THE YEAR IN REVIEW
The Group’s revenue for FY2018
rose to $32.7 million with a gross
profit of $9.4 million compared
to a gross profit of $2.6 million
a year ago, which included a
write-back of expired warranty
provision of $1.2 million for
FY2017. The impact of the
bargain purchase gain, due to
the 54.98% acquisition of CHO,
CHAIRMAN’S
MESSAGE
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B A K E R T E C H N O L O G Y
L I M I T E D