PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) plunged into the red with a net loss of RM25.22 million in the fourth quarter ended Dec 31, 2018 from a net profit of RM48.13 million a year ago, mainly due to losses from the marine segment.
The group’s revenue of RM273.24 million was 10% higher than the previous year’s corresponding quarter’s RM247.95 million, driven by higher contribution from the heavy engineering segment.
For the full-year period, it saw a net loss of RM122.69 million compared with a net profit of RM34.23 million, while the group’s revenue was 2% higher at RM974.35 million against RM956.41 million.
On prospects, MMHE said there has been positive signs that oil prices have begun to ease at between US$50-US$70 per barrel. Despite the gradual improvement, a range of factors have continued to influence oil prices including production cuts by OPEC, growth in US shale oil production and growing political tension across the globe.
The group remains prudent on the outlook for the industry in the near term given the uncertainties surrounding timing of capital spending by major oil and gas players.
“The outlook for marine business remains positive as global liquefied natural gas trade is expected to expand firmly driven by increase of exports from the US and Australia to Asia. In view of the forthcoming implementation of new rules by International Maritime Organisation, the group expects no further deferment by ship owners for dry docking activities in 2019,“ MMHE said.
The group had during the year secured a number of long term offshore fabrication frame agreements which are on call-out basis, including the long-term agreement signed with Saudi Arabian oil company (Saudi Aramco). These are expected to contribute positively to the group’s revenue in 2019 and beyond.
Meanwhile, MMHE remains committed to replenishing its order book in various geographical areas. Effort to ensure competitiveness of ongoing and future bids are continuing and remains a priority.
At market close today, the stock was up half a sen or 0.8% to 66 sen on 1,971,200 shares done.