MHB back in the black

KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) returned to the black in the fourth quarter ended December last year with a net profit of RM48.13 million from a net loss of RM119.57 million in the same period previously.

For the full year, the group achieved RM956.4 million revenue and a RM32.4 million net profit compared with a RM134.3 million net loss in 2016.

MHB’s board of directors has approved a tax-exempt dividend of three sen a share for totalling RM48 million.

The proposed dividend will be paid on March 8 to shareholders registered at the close of business on February 23.

The heavy engineering business unit recorded revenue of RM591.3 million against RM746.6 million in the previous year.

MHB said several offshore projects were completed in the first half of last year, while revenue from new projects would be recognised from this year onwards.

The segment posted a lower operating loss of RM36.7 million, from a RM107.7 million loss before, mainly due to recognition of change of orders and finalisation of completed projects in the current year.

The marine business unit posted lower revenue of RM365.1 million compared with RM444.6 million previously, due to the lower value and number of liquefied natural gas carrier dry docking repairs carried out in the year.

The segment reported an operating profit of RM52.8 million against RM88.5 million in the previous year.

MHB managing director and chief executive officer Wan Mashitah Wan Abdullah Sani said there had been a steady rise in oil price in recent months, in line with the tightening global oil output and escalating geopolitical risks.