PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd’s (MMHE) net loss narrowed to RM4.66 million for the third quarter ended Sept 30, 2019 compared with RM22.71 million in the previous corresponding quarter, as the marine segment turned into profit.
Revenue for the quarter, however, was 12.2% lower at RM254.35 million from RM289.8 million.
In a Bursa Malaysia filing, MMHE said the marine segment reported an operating profit of RM2.5 million in the current quarter compared with RM16 million loss in the corresponding quarter, mainly due to additional costs incurred for conversion work in the corresponding quarter.
However, the heavy engineering segment saw a higher operating loss of RM6.8 million against RM4.1 million in the corresponding quarter, dragged down by lower revenue from post sail away projects.
On a cumulative basis, the group’s net loss also narrowed to RM43.5 million from RM97.47 million a year ago. Revenue was 4.7% higher at RM733.9 million from RM701.12 million, due to an improved performance in the marine segment.
Looking ahead, the group said it would continue to focus on replenishing its order book in various geographical areas as well as diversifying into new businesses.
“The group remains vigilant on the outlook for the heavy engineering business in the near term due to the uncertainty on the timing of capital spending by major oil and gas players. The outlook for the marine business is expected to remain challenging as shipyards strive to capture opportunities in order to maximise utilisation amidst stiff competition in a volatile market.”
