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This article first appeared in The Edge Financial Daily on October 25, 2019

KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has narrowed its loss to RM4.66 million for the third quarter ended Sept 30, 2019 (3QFY19), from RM22.72 million a year earlier, helped by positive contribution from its marine segment.

The group said its marine segment posted an operating profit of RM2.5 million during the quarter, versus a loss of RM16 million for the corresponding quarter, when it recorded additional costs.

On the other hand, its heavy engineering segment posted a higher operating loss of RM6.8 million versus RM4.1 million for the previous year, as segment revenue fell following a decline in contribution from post-sail away projects.

The group’s overall revenue for the quarter, however, fell 12% to RM254.35 million from RM289.8 million a year earlier, as contributions from both its marine and heavy engineering segments declined.

For the nine months ended Sept 30, MHB’s net loss shrunk to RM43.5 million from RM97.5 million for the previous year’s corresponding quarter, while cumulative revenue grew 5% to RM733.9 million from RM701.12 million.

Notwithstanding the improved quarterly performance, MHB said the short-term outlook remains uncertain amid geopolitical tensions, slowing global economic growth, sluggish oil demand and the ongoing unresolved trade conflict between the US and China. The marine business is also expected to remain challenging.

 MHB shares rose half a sen or 0.55% to 91.5 sen yesterday, giving it a market capitalisation of RM1.46 billion.

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