MMHE 2Q pre-tax loss widens to RM13.45 mln
KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd's (MMHE) pre-tax loss in the second quarter (Q2) ended June 30, 2017, slipped further to RM13.45 million from a pre-tax loss of RM821,000 in the same quarter last year.
Revenue also shed to RM257.26 million from RM297.44 million previously.
For the six-month period, its pre-tax loss expanded further to RM31.06 million from a pre-tax loss of RM6.16 million, while revenue slipped 11 per cent to RM493.1 million from RM 554.2 million previously, it said in a filing to Bursa Malaysia yesterday.
As for the industry outlook, MMHE said it remained challenging for the group with oil price not moving in line with the Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC's voluntary cuts in production.
“Shale production activities is still robust, resulting in supply overload that will keep the oil price subdued over the year and next. Deferment of upstream projects are expected to prolong with cost cutting measures to be enhanced further,” it added.
However, the group remained committed to its strategy in managing cost, optimising resources and improving operational efficiency in line with the challenging environment.
“While the group successfully secured several contracts during the period, majority of the contribution will only be realised in 2018 onwards. Diversification into new revenue streams with recurring income is a priority while efforts to replenish the order book continues,” it added. — Bernama