MMHE Q3 in the red due to fewer projects

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Malaysia Ma­rine and Heav­ing En­gi­neer­ing Hold­ings Bhd (MMHE) saw a net loss of RM4.53 mil­lion for the third quar­ter ended Sept 30, 2016 com­pared with a net profit of RM16.97 mil­lion a year ago, on the back of fewer and lower value projects in progress.

Its rev­enue fell 24% to RM333.49 mil­lion from RM436.25 mil­lion in the pre­vi­ous year’s cor­re­spond­ing quar­ter.

MMHE said the con­tin­ued down­turn of the oil and gas in­dus­try is ex­pected to im­pact the group’s busi­ness with sig­nif­i­cant off­shore project can­cel­la­tions and de­fer­ments.

This is ex­pected to re­sult in fur­ther de­cline in the group’s as­set util­i­sa­tion, cur­rently be­ing as­sessed for im­pair­ment which will sig­nif­i­cantly af­fect the cur­rent year fi­nan­cial re­sult.

“Nev­er­the­less, the group con­tin­ues its ef­forts on cost man­age­ment and re­source op­ti­mi­sa­tion and has been suc­cess­ful so far in re­duc­ing its op­er­at­ing cost in line with the out­look of the in­dus­try.

In ad­di­tion, the group is also in­ten­si­fy­ing its ef­fort in re­al­is­ing the ini­tia­tives it had em­barked upon to re­plen­ish its or­der book, namely from on­shore seg­ment, hook-up & com­mis­sion­ing and fa­cil­i­ties im­prove­ment,” MMHE said.

For the nine-month pe­riod, MMHE saw a net loss of RM14.63 mil­lion com­pared with RM71.02 mil­lion a year ago mainly due to its heavy en­gi­neer­ing seg­ment.

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