Muhibbah Engineering Q2 earnings down 8%

PETALING JAYA: Muhibbah Engineering (M) Bhd net profit fell 8% to RM19.26 million in the second quarter ended June 30, 2015 from RM20.93 million, while revenue slumped 12% to RM410.34 million.

For the six months period Muhibbah Engineering net profit grew 3.5% to RM42.55 million from RM41.09 million a year ago.
However, revenue fell by 10.1% at RM773.55 million compared with RM860.09 million a year ago.

In a filing with Bursa Malaysia last Friday, Muhibbah Engineering said its total outstanding secured order book in hand stood at RM2.1 billion as at August 21, 2015.

Going forward, the group said it has commenced work for two projects secured from two largest main contractors of the Refinery and Petrochemicals Integrated Development Project in Johor, namely Toyo Thai and Tecnicas Reunidas, for a total contract value of RM275 million.

"The construction division has also further secured works for Northport and Westports," Muhibbah Engineering added.

The group also sees both its crane and airport divisions to be beneficiaries of the US dollar appreciation, as most of its revenue are in US dollars.