Chairman’s Message
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10
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CHAIRMAN’S
MESSAGE
DEAR
SHAREHOLDERS,
Onbehalf of theBoardofDirectors (“Board”), I
present toyouour annual report for thefinancial
year ended31December 2016 (“FY2016”).
2016was a further extension of the challenging
times faced by the oil and gas sector in 2015.
Despite the sustained low oil prices in 2015, the
widespreadfallofcompaniesandextensivemerger
andacquisitionactivitydidnot takeplace thatyear.
Instead,2016finallysawanemergenceofcompany
bankruptcies, debt restructurings and asset sales.
Singapore, as anoil hub inAsia,wasnot spared.
Onamorepositivenotehowever,Brentcrudeoil
prices, during the course of the year, trendedup,
ending theyear circa50%higher thanat the start
of theyearbut stillonlyaround45%of the5year
highs.ThiswasasaresultoffallingUSproduction
in thefirsthalfof theyearandOPECcuts towards
the tail endof 2016.
THEYEAR INREVIEW
TheGroup’srevenuewasdown60%yearonyear
at $21.5million, asweak sentiment continues to
weighon theoilandgas industry.Lowerrevenue,
foreignexchangegainand the impairment losson
goodwill recorded for FY2016 resulted in a net
lossof$8.3million for theyear, ascompared toa
net profit of $9.2million inFY2015.
LimHoSeng
Chairman
ManyofthemergeRand
acquisitionopportunities inthe
sectorare stillbeing playedout
andoffer potentiallyprofitable
revenue streams forcompanies
likeBakerTechwhichcontinues
tohaveastrongbalance sheet
andsignificantexperienceturning
around strugglingassets.
Annual Report 2016
