MMHE's Dry Dock at its yard in Pasir Gudang Johor
KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd
(MMHE) posted a net loss of RM4.53mil in the third quarter ended Sept 30, 2016 compared with a net profit of RM16.96mil in the same period a year ago.
The group’s registered a higher loss before taxation of RM2.2mil against the preceding quarter’s loss before taxation of RM800,000.
“The variance was mainly due to recognition of approved variation orders for Malikai project in preceding quarter, offsetted partially by the favourable impact from the foreign currency fluctuation,” MMHE said in the notes accompanying its quarterly results.
Its revenue in the third quarter 2016 fell to RM333.49mil compared with RM436.25mil in the same period a year ago.
In the first nine months, MMHE posted a net loss of RM14.63mil on revenue of RM887.65mil.
“The continued downturn of the oil and gas industry is expected to impact our business in terms of significant offshore project cancellations and deferments. This is expected to result in further decline in the group’s asset utilisation, currently being assessed for impairment which will significantly affect the current year financial result,” acting chief executive officer Wan Mashitah Wan Abdullah Sani said in a separate statement.
“Nevertheless, the group continues its efforts on cost management and resource optimisation and has been successful so far in reducing its operating cost in line with the outlook of the industry,” she added.
“In addition, we are also intensifying our effort in realising the initiatives we had embarked upon to replenish its order book, namely from onshore segment, hook-up and commissioning and facilities improvement,” Wan Mashitah said.
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