Baker Technology posts 71% fall in 4Q net profit to $6.4m 
 

Baker Technology, the Mainboard-listed manufacturer and provider of specialised marine offshore equipment and services for the oil and gas industry, says net profit for 4Q ending Dec 31 fell 71% y-o-y to $6.4 million.

Administrative expenses were 23% higher at $2.9 million due to higher professional and legal fees. Other expenses, mainly foreign exchange losses due to the weaker USD, fell sharply from $1.5 million to $0.2 million in the current quarter. Share of results of PPL Shipyard was nil as PPL Holdings was disposed of during 4Q 2010.

The group’s net order book stood at US$33 million ($42.2 million) as at end December 2010, from US$20 million as at end September 2010. This was also a vast improvement from the net order book of US$7 million a year ago. These orders are expected to be completed within the next 12 months.

 

 

PPL Shipyard is an integrated rig design and rig building yard with proven track record in the building and servicing of world class proprietary jack-up and semi-submersible rigs. To-date, the shipyard has built over 40 jack-ups and 4 semi-submersible rigs.

The company has great potential, is profitable with $20M profits for the last 9 mths and awarded a huge contract recently.

Refreshing some extracts from past SGX records:

 

CLARIFICATION OF PRESS RELEASE ISSUED BY SEMBCORP MARINE

LTD (“SCM”) ON 12 AUGUST 2010 (THE “SCM PRESS RELEASE”)

The key issues of the SCM Litigation (as set out in Section 12 of the Circular), including, inter alia, whether the implied terms in the Joint Venture Agreement and the supplemental agreement dated 5 July 2003 alleged by SCM on its pre-emptive rights to the 15% shareholding interest in PPL Shipyard held by PPLH and E-Interface exist and whether the Joint Venture Agreement between SCM and PPLH subsists, will be decided at trial.The Company will keep shareholders apprised of any material developments, where appropriate.

By Order of the Board

Baker Technology Limited

Aw Seok Chin

Company Secretary

14 August 2010

UPDATES IN RELATION TO THE PROPOSED DISPOSAL

The Board of Directors of the Company wishes to announce that the Purchaser and the

Company have agreed:

(a) to vary the terms and conditions of the Agreement by extending the Long Stop Date from 27 October 2010 to 27 April 2011; and

(b) to extend the long stop date of the Escrow Agreement from 27 October 2010 to 27 April 2011.

All other terms and conditions of the Agreement remain unchanged.

By Order of the Board

Baker Technology Limited

Aw Seok Chin

Company Secretary

26 June 2010

 

The potential sale of 15% stake to PPL for a US $116 profit (book value $10M) is still very much alive and with oil and gas prices moving up, the upside is already written on the wall. Looks like the long consolidation and accumulation has ended and upside movement is highly possible. 


 

The Group has no bank borrowings.

Consequently, shareholders‟ fund increased from S$99.5 million as at 31 December 2009 to S$113.3 million at 30 September 2010.

Net asset value per share as at 30 September 2010 stood at 16.6 cents, up from 15.2 cents.

Order book
As at end September 2010, the Group‟s net order book stood at US$20 million, marking a recovery from the low of US$7 million as at end December 2009. These orders are expected to be completed within the next 12 months.