KUALA LUMPUR (Feb 9): Despite a sharp increase in revenue, Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) slipped into a net loss of RM8.56 million in the fourth quarter ended Dec 31, 2020, from a net profit of RM9.28 million a year ago, dragged by higher operating losses in the heavy engineering segment.

The group’s quarterly revenue jumped 152.34% to RM695.54 million, from RM275.64 million a year ago, due mainly to higher revenue from the heavy engineering segment, its filing to Bursa Malaysia showed.

The group said its heavy engineering segment’s revenue increased to RM594.8 million from RM148.5 million a year ago, on the back of increased activities in ongoing projects.

“The segment has recorded an operating loss of RM24 million in the current quarter compared to an operating loss of RM9.9 million in the corresponding quarter mainly due to lower contribution from post-sailaway projects,” it said.

For the full year ended Dec 31, 2020, the group saw its net losses widen to RM396.81 million, from RM34.22 million a year ago, mainly due to provision made for Covid-19 impact and the associated higher unabsorbed overheads due to lower activities resulting from yard closure and border restriction amounting to RM189 million.

Its yearly revenue, however, rose 55.19% to RM1.57 billion, from RM1.01 billion in the previous year, mainly contributed by an increase in the heavy engineering segment's revenue.

The group said it is currently pursuing recovery of the Covid-19 cost impact from clients.

It said it remained cautious on the prospects of orderbook replenishment in the near term in view of uncertainties surrounding the timing of capital spending by oil majors.

It also said the group remains resolute and diligent in pursuing business opportunities in other segments and new regions to replenish its orderbook while the oil market retightens.

“Additionally, the group continues to emphasize on focused execution and safe delivery of ongoing projects as well as stringent cost management coupled with fiscal discipline to optimise operating costs amidst an ever-challenging and competitive industry environment,” it said.

At noon break, MHB shares rose 0.5 sen or 1.09% to 46.5 sen, valuing the company at RM696 million.