PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) returned to the black registering a net profit of RM16.41 million for the third quarter ended September 30, 2017 against a net loss of RM4.53 million in the previous corresponding period, due to lower losses registered for the heavy engineering segment.
Revenue, however, declined 35.4% from RM333.49 million to RM215.35 million.
The group said in a filing with the stock exchange that heavy engineering’s operating loss of RM1.8 million was lower than the RM21.6 million loss posted in the corresponding quarter, mainly due to finalisation of completed projects in the current quarter.
For the marine segment, its operating profit of RM17 million was RM2.9 million lower than the corresponding quarter’s profit of RM19.9 million, dragged down by lower value and number of vessels repaired.
Looking ahead, MMHE said while crude oil prices have slightly improved following OPEC and non-OPEC members’ production commitment, the oil and gas outlook remains uncertain with heightened geopolitical concerns.
It added that robust shale production activities will keep the price of oil subdued over a prolonged period.
Nonetheless, the group remains committed to its strategy in managing costs, optimising its resources and improving operational efficiency to combat the challenging environment.
“Replenishment of order book from marine segment and offshore services are progressing and remain a priority.”
MMHE also noted that while the group has successfully secured several offshore fabrication projects during the period, the majority of the contribution will only be realised in 2018 and beyond.
For the nine-month period, its net loss narrowed from RM14.63 million to RM13.9 million on the back of a 20.2% drop in revenue from RM887.66 million to RM708.46 million.
At 12.30pm, MMHE shares were unchanged at 75.5 sen on some 181,000 shares done.