KUALA LUMPUR (Oct 31): After seven straight quarterly losses, Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) reported a net profit in the third quarter ended Sept 30, 2017 (3QFY17), on lower operating loss from its heavy engineering division mainly from finalisation of completed projects in the current quarter under review.

The group posted a net profit of RM16.41 million in 3QFY17 compared with a net loss of RM4.53 million in 3QFY16. It posted earnings per share of one sen compared with a loss per share of 0.3 sen a year ago.

This was achieved despite lower revenue of RM215.35 million against RM333.49 million a year ago.

In a filing with Bursa Malaysia today, MHB said revenue from its marine division declined 14% year-on-year to RM97.7 million in 3QFY17 from RM113.8 million mainly due to lower value and number of vessels repaired.

"Following the decrease in revenue, operating profit of RM17 million was RM2.9 million lower than the corresponding quarter's profit of RM19.9 million," it said.

The group also saw its share of loss in joint ventures increase to RM1.3 million in 3QFY17 from RM600,000 a year ago, mainly due to recognition of additional production costs and delays in ongoing projects.

For the cumulative nine months (9MFY17), MHB narrowed its net loss to RM13.9 million from RM14.63 million a year ago, while revenue fell 20.2% to RM708.46 million from RM887.66 million in 9MFY16.

On prospects, MHB said while crude oil prices have slightly improved following the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members' production commitment, the oil and gas outlook remains uncertain with heightened geopolitical concerns.

"Robust shale production activities will keep the price of oil subdued over a prolonged period," it added.

MHB said it 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.

"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," it noted.

At 3.06pm, MHB shares were up 7 sen or 9.27% at 82.5 sen, with 3.53 million shares done, giving it a market capitalisation of RM1.21 billion.