Baker Technology Limited
Chairman’s Message
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11
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TheGroupreportednetoperatingcashoutflowsof
$30.2millionforFY2016 tofundworkingcapital
requiredforoperations.Cashandshort-termdeposits
were at $107.0million,withnoborrowings as at
31December 2016.
TheBoard is recommending a first and final tax
exempt (one-tier)dividendof1.25centspershare
for the financial year ended 31December 2016,
compared to2.5 cents per share (adjusted for the
shareconsolidation) for the sameperiod in2015.
In relation to the Company capital structure, on
31May 2016, the Company completed a share
consolidationofeveryfiveexisting issuedordinary
shares in the capital of the Company into one
consolidated share.
LOOKINGAHEAD
Manymarket participantsexpect abetteryear for
the oil and gas sector in 2017 given the OPEC
decision tocutproduction inaddition to the lower
costoperatingenvironmentascompaniesadjusted
tooperatemoreefficientlyatalowercost.However
visibility is still lacking as there are still many
uncertainties in the market including potential
increases in production by non-OPEC countries,
slowerosionof high levelsof oil inventories and
alsounpredictable political black swan events in
Europeand theUS.
Manyof themergerandacquisitionopportunities
in the sector are still being played out and offer
potentiallyprofitablerevenuestreamsforcompanies
likeBakerTechwhichcontinues tohaveastrong
balance sheet and significant experience turning
around strugglingassets.
Toensure thatweremaina leader in thissector, the
Grouphas takenmeasures to reduce itscost base
and curtail discretionaryoperational expenditure
for the foreseeable futurewhile at the same time
exploringmanyopportunities toadd toourGroup
inaprofit accretive fashion.
We have a proven track record of steering the
business through some very roughwaters and I
amconfident thatweareoperationallywell-placed
towithstand thebumpsover themedium term.
INAPPRECIATION
On behalf of the Board, I would like to express
my heartfelt thanks to our shareholders, valued
customers, suppliers and business associates for
their patience and long-standing support in the
Company.
Iwouldalsoliketoacknowledgetherelentlesseffort
and grit of themanagement and staff who press
on in the faceof a toughoperatingenvironment.
I alsowish to thankmycommittedcolleagueson
the Board for their guidance, wise counsel and
solidarityaswepersevere through thechallenging
journeyahead.
LimHoSeng
Chairman
BakerTechnologyLimited
