Mainboard-listed Technics Oil and Gas, the full-service integrator of compression systems and process modules for the global offshore oil and gas sector, says net profit attributable to equity holders of the company climbed 62% to $3.21 million for the 3 months ended 31 December 2010 (1QFY2011) from $1.98 million for the 3 months ended 31 December 2009 (1QFY2010).

Group revenue registered at $22.33 million for 1QFY2011 compared to $25.84 million 1QFY2010 mainly from revenue recognition of the five major EPCC projects that were being carried out during the period under review. Cost of sales fell 23% to $13.45 million for 1QFY2011 from $17.47 million in 1QFY2010, in line with the decrease in revenue and a better cost management.

Gross profit was recorded at $8.88 million for 1QFY2011, a 6% increase from $8.37 million in 1QFY2010. This was primarily due to a number of fast-tracked fixed-platform EPCC projects which resulted in cost savings in the engineering works and better bargaining power on quantity discounts. As a result, gross profit margin for 1QFY2011 improved to 40% as compared to 32% in 1QFY2010.

In terms of operating expenses, the group’s finance costs decreased marginally by $0.02 million or 7% year-on-year (y-o-y) in 1QFY2011, mainly due to lower utilisation of bank trade facilities. The group’s administrative expenses rose by $0.62 million or 16% y-o-y in 1QFY2011, attributable to the administrative expenses of the new subsidiaries, which were acquired in April 2010. The group’s other charges also decreased by $0.91 million in 1QFY2011 mainly due to lower loss from foreign exchange.