Malaysia Marine and Heavy Engineering returns to the black in Q4 with RM48.13 million net profit

PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) swung to the black registering a net profit of RM48.13 million for the fourth quarter ended December 31, 2017 against a net loss of RM119.67 million in the previous corresponding period, driven by higher contribution from the heavy engineering segment and the absence of provision for asset impairments.
Revenue, however, declined 18.3% from RM303.64 million to RM247.95 million.
The group has proposed to declare a dividend of 3 sen per share amounting to RM48 million for the quarter under review, payable on March 8.
MMHE told Bursa Malaysia that its heavy engineering segment recorded an operating profit of RM11.6 million against a loss of RM34.3 million, mainly due to the finalisation of completed projects in the current quarter.
However, operating profit for the marine segment was down by RM37.3 million to RM12.1 million on the back of lower value and number of vessels repaired in the current quarter.
Looking ahead, the group remains cautious on the outlook for the industry in the near term as there is still uncertainty to the industry's capital spending.
"MMHE will continue its efforts on cost management and resource optimisation and is committed to its key strategies including strengthening its position in existing markets as well as expanding into new markets."
MMHE noted that the group had during the year secured a number of offshore fabrication projects, which are expected to contribute positively to its revenue in 2018 and beyond.
Its full-year net profit stood at RM34.23 million versus a net loss of RM134.3 million a year ago, with revenue dropping 19.7% from RM1.19 billion to RM956.41 million.
MMHE’s share price gained 6.5 sen or 8.6% to close at 82 sen today on some 3.43 million shares done.