Baker Technology, the manufacturer and provider of specialised marine offshore equipment and services for the oil and gas industry, has reported a 43% fall in net profit to $1.4 million for the three months ended 31 March 2011 (1Q2011) from $2.5 million in 1Q2010.

Group revenue was up 71% to $10.6 million in 1Q2011 compared to a year ago led by a higher level of completions and progressive recognition of new orders. However, gross profit was up 22% to $5.4 million, mainly due to a lower writeback of unutilised warranty provision of $0.3 million, compared to $1.1 million in 1Q 2010.

1Q2011 pretax profits declined 30% to $2.1 million as administrative and other operating costs rose. Administrative expenses were 66% higher at $2.3 million due to higher professional and legal fees. The group also reported a higher foreign exchange loss of $1.4 million as the US$ fell against the S$ in the first quarter of the year. The roup’s share of results from its 49%-owned associate—York Transport Equipment Asia – improved from $79,000 to $457,000. This was achieved on the back of an improving operating environment in the trailer axle industry, particularly in the Indian market.

The group’s net order book as at 31 March 2011 stood at US$67 million ($82 million). This represented a doubling of the US$33 million order book as at 31 December 2010, and more than tripling of the US$20 million order book a year ago. These orders are expected to be completed within the next 12 to 18 months.