MMHE posts wider net loss in Q1

PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd’s (MMHE) net loss widened to RM16.6 million in the first quarter ended March 31, 2017, from RM7.6 million in the previous corresponding quarter, due to higher operating loss.

Revenue decreased by 8.1% to RM235.8 million, compared with RM256.72 million in the same period last year.

In a filing with Bursa Malaysia yesterday, MMHE said the group recorded higher operating loss of RM15.6 million, against RM3.5 million loss in the corresponding quarter.

Furthermore, the group said its marine segment’s revenue and operating profit was lower as corresponding quarter’s results included one-off revenue and contribution from finalisation of carried forward projects.

On prospects, MMHE said the group’s outlook remains uncertain, despite the improved crude oil prices in recent months as a result of reduction in oil output since the start of the year.

MMHE added the deferment and scale-down of upstream projects is expected to prolong and continue to pose challenges to the industry for the major part of the year.

However, the group said it remains committed to its strategy in managing cost, optimising its resources and improving operational efficiency in line with the challenging environment.

“Effort to replenish orderbook from the onshore segment, hook-up and commissioning, facilities improvement and the marine segment are progressing and remain an ongoing priority,” it said.