MMHE posts 3Q net profit of Rm16mil

KUALA LUMPUR: As Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) continues on its earnings recovery trend, it says capital spending by oil majors may continue due to strong oil prices.

However, it acknowledged that global supply chain disruptions and rising production costs could adversely impact business prospects in its heavy engineering segment.

Announcing its results for the quarter ended Sept 30, 2022, the group said the heavy engineering segment recorded revenue of Rm320.1mil, contributing to a 5.1% year-onyear increase in the group’s overall revenue to Rm409.2mil.

Group net profit for the quarter was Rm15.95mil compared with a net loss of Rm23.88mil in the previous corresponding quarter.

Earnings per share was one sen compared with a loss of 1.5 sen per share in 3Q of financial year 2021.

Meanwhile, MMHE reported a significant turnaround in its marine business due to higher dry-docking activities since the reopening of borders.

“The reopening of borders on April 1 has facilitated entry of technical specialists into the yard which had positively impacted Marine operations,” it said.

Nevertheless, it said the segment to remained challenging in light of high global gas prices and robust liquefied natural gas (LNG) demand from the Far East.

“This will lead to growth in LNG trade, more vessel owners are anticipated to defer dry-docking and thus create stiffer competition amongst shipyards for the limited dry-docking opportunities,” said MMHE.

Moving forward, the group aimed to replenish its order book by capturing opportunities in both local and international markets including in the renewable energy sector.