SINGAPORE – Mainboard-listed MTQ Corporation on Wednesday (July 24) reported a first quarter net profit of $767,000, from a net loss of $3.5 million a year ago. Contributions for the quarter came mainly from its oil engineering segment, it said in a regulatory filing before the market opened.

Earnings per share stood at 0.35 cent for the three months ended June 30, from a loss per share of 1.71 cents a year ago. No dividend has been declared for the quarter, unchanged from a year ago.

MTQ shares closed at $0.21 on Tuesday, down 0.5 cent or 2.33 per cent.

The group also saw a 59 per cent rise in revenue to $38.5 million, from $24.3 million a year ago, due to better gross margins overall from a rise in activities across all segments compared with the year prior.

Despite higher revenue from its oil engineering segment, the group’s Neptune segment posted a “small” loss.

On outlook, the group said its oil engineering segment continued to make steady progress on improving profitability. The orders it has on hand, along with the general level of enquiries are said to be “encouraging for the rest of the year even as the overall macro economy weakens”.

As for the Neptune segment, the group said its outlook is “strengthening”, but overall profitability requires better margins and higher activity levels. It added that it has been “in discussions” to strengthen this segment.

“Accordingly, the group has decided to unlock the value of the Neptune segment by partnering with an established subsea vessel operator which will bring synergies into our investment in this subsea space,” MTQ group chief executive Kuah Boon Wee said.

Operational execution will be the next near-term focus in improving overall performance, Mr Kuah added.