MMHE to push ahead with oil and gas expansion

KUALA LUMPUR: Malaysia Marine and Heavy Engineering (MMHE), which posted wider net losses of RM25.27mil in the first quarter ended March 31 due to lower revenue, is pushing ahead to expand in oil and gas services.

MMHE managing director and CEO Wan Mashitah Wan Abdullah Sani said MMHE is committed to its strategy of expanding into new business segments, in oil and gas services, to ensure sustainability of income.

“Replenishment of order book for both marine and heavy engineering segments remains a top priority,” she added in a statement acompanying the energy industry and marine solutions provider’s results.

MMHE’s Q1 net losses were wider when compared with the RM16.61mil a year ago. Revenue fell 20% to RM188.27mil from RM235.8mil a year ago.

Loss per share were 1.6 sen compared with one sen a year ago.

Its heavy engineering segment recorded a revenue of RM111.3mil, down from RM153.5mil a year ago.

“The decrease was mainly due to lower revenue recognised from completed or sailaway projects while ongoing projects are either nearing completion or still at early stages of work,” it said.

The heavy engineering segment recorded a lower operating loss of RM12.8mil against RM24.1mil loss in the same corresponding period mainly from finalisation of completed projects in the current quarter.

Its offshore sector of the heavy engineering segment successfully sailed away five units of Dangote Catenary Anchor Leg Mooring (CALM) buoy for SOFEC Inc.

MMHE pointed the Dangote CALM buoys, which weighed 2,990 tonnes has already been deployed to the ultimate client, Dangote Oil Refining Company, offshore Nigeria.

As for its onshore sector, the heavy engineering segment had completed the centralised piping fabrication (CPF) works for Refinery and Petrochemical Integrated Development (Rapid) Package 5 for Toyo Engineering & Construction Sdn Bhd.

As for its marine segment, revenue fell to RM77mil from RM82.4mil a year ago mainly due to lesser repair works performed as some ship owners have deferred their dry docking to a later period than planned. For Q1, the marine segment completed the repair and maintenance of 20 vessels of various categories.

In addition, the marine segment has two ongoing conversion projects namely the Nautica Bergading FSO for E.A. Technique (M) Berhad and the FSO Benchamas-2 for MISC Bhd.

MMHE said the Marine segment recorded an operating loss of RM7.2mil against the RM9.4mil profit a year ago mainly due to the decrease in revenue.

Wan Mashitah said global oil prices have seen a steady rise since 2016, spurred by cuts in global production initiated by Opec in 2017.