MMHE returns to the black in third quarter
PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) recorded a net profit of RM16.41mil for its third quarter ended Sept 30, compared with a net loss of RM4.53mil in the previous corresponding period.
This was despite recording lower quarterly revenue for its heavy engineering and marine divisions, the company said in a filing with Bursa Malaysia yesterday.
“The group recorded an operating profit of RM17.1mil compared with an operating loss of RM1.7mil in the corresponding quarter.
“This is achieved despite a lower revenue of RM215.4mil against RM333.5mil in the corresponding quarter,” it said.
Commenting on its heavy engineering division, MMHE said revenue of RM117.6mil was 47% lower than RM219.7mil in the corresponding quarter.
This, MMHE said, was mainly due to a lower backlog following completion of offshore projects in the current financial year, while ongoing onshore projects in the current quarter are nearing completion.
“Notwithstanding the lower revenue, the heavy engineering’s operating loss of RM1.8mil was lower than the RM21.6mil loss posted in the corresponding quarter, mainly from finalisation of completed projects in the current quarter.”
MMHE said third quarter revenue for its marine division was RM97.7mil - 14% lower than RM113.8mil in the corresponding quarter.
The company attributed the lower earnings to lower value and number of vessels repaired.
“Following the decrease in revenue, operating profit of RM17mil was RM2.9mil lower than the corresponding quarter’s profit of RM19.9mil.”
For the nine-months period ended Sept 30, 2017, MMHE recorded a lower net loss of RM13.90mil compared with a net loss of RM14.63mil in the previous corresponding period, while revenue was lower at RM708.46mil compared with RM887.66mil a year earlier.
“The group recorded higher operating loss of RM9.3mil from RM5.6mil loss in the previous corresponding period, mainly due to lower interest income in the current period and a one-off legal settlement recognised in the previous corresponding period,” MMHE said.