MHB returns to the black in Q1 with earnings of RM2.72m
KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) returned to the black in its first quarter ended March 31 with a net profit of RM2.72 million from a net loss of RM104.35 million in the same period a year ago.
Its revenue rose 21.6 per cent to RM417.8 million from RM343.57 million previously.
MHB said the heavy engineering segment logged a higher revenue of RM358.4 million compared to RM304.2 million in the corresponding period a year ago.
The segment posted an operating profit of RM2.9 million, which is a turnaround from the RM85.1 million operating loss previously.
The partial recovery of Covid19 claims and reversal of a warranty provision for a post-sailaway project in the current quarter also contributed to the improved performance.
For the next three months, the ongoing projects in the yard for the heavy engineering segment include engineering, procurement, construction, installation and commissioning (EPCIC) works for the Kasawari Gas Development Project and EPCIC works for the SK408W Jerun Development Project, which was were awarded in 2019 and last year, respectively.
The marine segment logged a higher revenue of RM59.4 million in the first quarter versus RM39.4 million in the same period a year ago, supported by higher drydocking activities.
The segment swung to an operating profit of RM3.7 million against an operating loss of RM17.7 million previously due to the reversal of impairment loss on trade receivables as the company recovered debts in the current quarter, among others.
MHB’s total assets and equity as of the quarter stood at RM3.4 billion and RM1.7 billion, respectively.
Managing director and chief executive officer Pandai Othman said it remained cautiously optimistic about the outlook for the heavy engineering segment due to factors such as the surge in oil prices and global supply chain disruption.
“But we will continue to pursue business opportunities in new regions and segments to replenish our order book. Improving cost competitiveness and profitability remains our priority,” he added.