This article first appeared in The Edge Financial Daily, on February 4, 2016.

KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) posted a net loss of RM27.13 million for the fourth quarter ended Dec 31, 2015 (4QFY15) compared to a net profit of RM16.48 million a year ago, after recognising impairment losses for both goodwill and assets amounting to RM99.8 million.

Its operating profit, however, was 20.9% higher at RM50.4 million, compared with RM41.7 million in 4QFY14, while revenue was RM721.14 million, 41.9% higher than 4QFY14’s RM508.34 million, its bourse filing showed.

In 4QFY15, its offshore business segment’s operating profit rose to RM25.6 million from RM10.74 million a year ago, as revenue climbed to RM615.13 million from RM422.62 million due to currency gains from the strengthening of the US dollar against the ringgit.

Meanwhile, its marine segment’s operating profit almost doubled to RM22.48 million from RM13.02 million in 4QFY14, although revenue fell 9.5% to RM106.01 million from RM117.15 million previously.

For the full year FY15, MHB’s net profit came in at RM43.89 million, about one-third of the RM129.93 million it achieved in FY14, while revenue dipped to RM2.46 billion from RM2.7 billion.

In a statement, MHB managing director and chief executive officer Datuk Abu Fitri Abdul Jalil said the tough operating environment in the upstream segment should persist into 2017, as national and international oil companies continue to cut spending.

“Our marine business is projected to remain vibrant as the firm tanker charter rates in the marine segment will somewhat mitigate the slowdown of the offshore unit. The group’s efforts to diversify have borne results with the recent awards of work in Rapid (refinery and petrochemical integrated development) projects.”