KUALA LUMPUR (Feb 7): Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) reported a net profit of RM48.13 million for its fourth quarter ended Dec 31, 2017 (4QFY17), versus a net loss of RM119.67 million in the same quarter last year, despite lower revenue, as its heavy engineering segment returned to black. 

The group's quarterly revenue fell 18% to RM247.95 million from RM303.64 million a year ago, its Bursa Malaysia filing today showed. Earnings per share was at 3 sen per share, compared to a loss per share of 7.5 sen in 4QFY16.

It announced an interim dividend of 3 sen per share for the financial year ended Dec 31, 2017 (FY17), payable on March 8.

The group said its heavy engineering segment recorded an operating profit of RM11.6 million against RM34.4 million loss last year, mainly from finalisation of completed projects in the current quarter.

The segment's revenue, however, slipped 6% to RM162.3 million from RM172.8 million in the corresponding quarter, as offshore projects had been completed in the first half of FY17, while onshore projects are nearing completion in the current quarter.

For the full FY17, MMHE returned to black with a net profit of RM34.23 million versus a net loss of RM134.3 million in FY16, though full year revenue was down 20% to RM956.41 million, from RM1.19 billion.

“The group remains cautious on the outlook for the industry in the near term. There is still uncertainty as to the industry's capital spending. MMHE will continue its efforts on cost management and resource optimisation and is committed to its key strategies, including strengthening its position in existing markets, as well as expanding into new markets,” the group said.

A number of offshore fabrication projects secured during the year are expected to contribute positively to the group's revenue in 2018 and ahead, the filing added.

At 3.45pm, MMHE shares rose 6 sen or 7.95% to 81.5 sen, for a market capitalisation of RM1.23 billion. In the past 12 months, the stock has retreated 18.81%.