MMHE narrows net loss in third quarter

PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) has narrowed its net loss to Rm4.66mil in its third quarter ended Sept 30 from Rm22.72mil a year ago, but remains cautious on the outlook due to volatile geopolitical issues.

It told Bursa Malaysia yesterday that its revenue was lower at Rm254.34mil, down 12.2% from Rm289.80mil before. Loss per share was at 0.29 sen compared with 1.42 sen previously.

In the nine-month period ended Sept 30, its net loss was also reduced to Rm43.50mil compared with Rm97.47mil in the previous corresponding period.

Revenue, however, increased by 4.6% to Rm733.90mil from Rm701.11mil.

MMHE said the heavy engineering segment’s revenue rose slightly to Rm430.1mil from Rm427.4mil.

However, it posted a higher operating loss of Rm50.4mil from Rm40.6mil, mainly due to lower contributions from post-sail away projects.

The ongoing projects for the heavy engineering segment include the engineering, procurement, construction, installation and commissioning (EPCIC) of the centralised processing platform for the Bokor Phase 3 Redevelopment Project, the Pluto Water Handling Module project, and EPCIC works for the Kasawari Gas Development project.

In a statement, MMHE managing director and chief executive officer Wan Mashitah Wan Abdullah Sani said the outlook for the marine business is expected to remain challenging, as shipyards strive to capture opportunities to maximise utilisation amidst stiff competition in a volatile market.

“Although prospects for upgrading and retrofitting jobs are expected to improve in light of the forthcoming IMO2020 sulphur cap implementation, some shipowners are considering reducing their dry-docking repair costs in the current volatile market,” she said. MMHE will continue to focus on replenishing its order book in various geographical areas, as well as diversifying into new businesses.