SINGAPORE (July 28): MTQ Corp has announced a net loss of $2.3 million in the first quarter ended June 30, 2015 from earnings of $4.1 million in the previous corresponding quarter.

This came on lower revenue and weaker margins amid softer customer demand, the engineering, maintenance and subsea services group says in a statement to the stock exchange.

MTQ’s revenue declined 22% to $60.01 million from $76.69 million a year ago.

Gross profit margin narrowed to 26.0% from 34.0 previously.

But operating expenses and staff costs have shrunk following cost rationalisation efforts, MTQ says.

MTQ foresees the market environment will remain challenging as competition has led to lower margins.

It assures the group remains “financially strong” as it looks to tap “market opportunities” while continuing to reduce overheads and improve utilisation.

Shares of MTQ ended lower at 69 cents, down 3.5 cents or 4.8%.