MHB share price dives as Q2 net loss widens to RM13.7m

New Straits Times - - Business -

KUALA LUMPUR: Malaysia Marine and Heavy En­gi­neer­ing Hold­ings Bhd (MHB) has widened its net loss to RM13.7 mil­lion in the sec­ond quar­ter ended June 30 from RM2.56 mil­lion, as a re­sult of weaker rev­enue and seg­men­tal per­for­mance.

The news pushed MHB’s share price to an all-time low of 71 sen yes­ter­day, down 2.74 per cent from Wed­nes­day’s close.

Year-to-date, the stock has shed more than 21 per cent.

In a fil­ing to Bursa Malaysia yes­ter­day, MHB said its heavy en­gi­neer­ing seg­ment’s rev­enue was 27 per cent lower than the cor­re­spond­ing quar­ter. This was mainly due to lower rev­enue as most projects were near­ing com­ple­tion.

Its rev­enue de­creased 13.5 per cent to RM257.27 mil­lion from RM297.44 mil­lion a year ago.

For the six-month pe­riod, MHB’s net loss widened to RM30.31 mil­lion from RM10.14 mil­lion in the same pe­riod last year.

Its rev­enue in the same pe­riod de­creased 11 per cent to RM493.11 mil­lion from RM554.16 mil­lion.

MHB said it re­mained com­mit­ted to manag­ing cost, op­ti­mis­ing re­sources and im­prov­ing op­er­a­tional ef­fi­ciency, in line with the chal­leng­ing en­vi­ron­ment.

It said while the group had se­cured sev­eral con­tracts dur­ing the pe­riod, it was mind­ful that the ma­jor­ity of the con­tri­bu­tion would only be re­alised next year and beyond.

Di­ver­si­fi­ca­tion into new rev­enue streams that pro­vided re­cur­ring in­come was a pri­or­ity while ef­forts to re­plen­ish the or­der book con­tin­ued, added the com­pany.

An off­shore con­struc­tion project by Malaysia Marine and Heavy En­gi­neer­ing Hold­ings Bhd. The firm’s share price has shed more than 21 per cent yearto-date.

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