MHB posts Q1 net loss of RM7.5m

PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) recorded a net loss of RM7.58 million in the first quarter ended March 31, 2016 (Q1FY16) from a net profit of RM36.03 million in the previous corresponding quarter.

Revenue fell 64.3% to RM256.72 million from RM719.5 million a year ago.

In a filing with Bursa Malaysia yesterday, MHB said the group’s offshore division registered significantly lower revenue and an operating loss during the quarter, mainly due to lower backlog as most of its projects near completion.

MHB said this was despite its marine segment’s revenue and operating profit being higher compared with the previous corresponding quarter, driven by increased value for vessels repaired from liquefied natural gas, floating production storage and offloading vessel and floating storage and offloading unit categories.

On prospects, MHB said it expects the financial performance of its offshore business to remain sluggish given the challenging environment in the upstream segment.

On the marine business, the group expects it to remain positive and will, to a certain extent, cushion the slowdown of the offshore business. It said it is looking at several initiatives to expand the marine repair business to balance the business portfolio.