Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 27): Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) posted its fourth straight quarter of net losses today, reporting a net loss of RM4.53 million or 0.3 sen loss per share for the third quarter ended Sept 30, 2016 (3QFY16), compared with a net profit of RM16.97 million or 1.1 sen per share a year ago.

The group blamed the loss on fewer and lower-valued projects in progress.

Revenue fell 23.6% to RM333.49 million in 3QFY16, from RM436.25 million in 3QFY15, on lower contribution from its heavy engineering business unit, on the back of fewer and lower value project in progress.

"The marine business unit also registered a lower revenue, mainly due to lower number of liquefied natural gas (LNG) and rig repairs, as well as conversion works. The unit is currently completing the floating storage and offloading vessel (FSO) — Nautica Bergading conversion, which is targeted for sail-away in January 2017," said MHB in a statement today.

There were no dividend payment in the current quarter.

For the cumulative nine months ended Sept 30, 2016 (9MFY16), the group registered a net loss of RM14.63 million or 0.9 sen loss per share, compared with a net profit of RM71.02 million or 4.4 sen per share; while revenue dropped 48.9% to RM887.66 million, from RM1.74 billion in 9MFY15.

For 9MFY16, MHB said it successfully completed the sail-away of the 27,500-tonne Malikai tension leg platform for Shell to the Malikai deepwater field 100km off the Sabah coast, a load-out of jacket for the wellhead platform (WHP) topside of the Besar-A project, an integration of turret onto the Bergading vessel which is undergoing FSO conversion, and repair and maintenance works of 43 vessels.

With ongoing investments in the yard optimisation programme, it added that the group’s property, plant and equipment stood at RM1.63 billion and total equity at RM2.66 billion.

“The continued downturn of the oil and gas industry is expected to impact our business in terms of 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," MHB acting chief executive officer Wan Mashitah Wan Abdullah Sani said.

"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,” she added.

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 and commissioning and facilities improvement, said Wan Mashitah.

MHB shares closed unchanged at RM1.02 today, for a market capitalisation of RM1.63 billion.

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