MMHE Q3 in the red due to fewer projects

PETALING JAYA: Malaysia Marine and Heaving Engineering Holdings Bhd (MMHE) saw a net loss of RM4.53 million for the third quarter ended Sept 30, 2016 compared with a net profit of RM16.97 million a year ago, on the back of fewer and lower value projects in progress.

Its revenue fell 24% to RM333.49 million from RM436.25 million in the previous year’s corresponding quarter.

MMHE said the continued downturn of the oil and gas industry is expected to impact the group’s business with significant offshore project cancellations and deferments.

This is expected to result in further decline in the group’s asset utilisation, currently being assessed for impairment which will significantly affect the current year financial result.

“Nevertheless, the group continues its efforts on cost management and resource optimisation and has been successful so far in reducing its operating cost in line with the outlook of the industry.

In addition, the group is also intensifying its effort in realising the initiatives it had embarked upon to replenish its order book, namely from onshore segment, hook-up & commissioning and facilities improvement,” MMHE said.

For the nine-month period, MMHE saw a net loss of RM14.63 million compared with RM71.02 million a year ago mainly due to its heavy engineering segment.