KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd
posted wider net losses of RM13.7mil in the second quarter ended June 30, 2017 due to a decline in heavy engineering revenue and it expects the outook to remain challenging due to the volatile crude oil price.
The oil and gas support services and shipping company announced on Thursday the net losses were higher than the RM2.56mil a year ago. Its revenue fell 13.5% to RM257.26mil from RM297.44mil.
Loss per share was 0.9 sen compared with 0.2 sen.
For the first six months ended June 30, 2017, its net losses widened also to RM30.31mil from RM10.13mil. Its revenue fell to RM493.11mil from RM554.16mil.
MMHE said the heavy engineering business unit's revenue fell to RM311.4mil from RM354.2mil.
“The contraction was due to lower revenue recognised in the current period on the back of fewer and lower value projects in progress,” it said.
The marine business unit also registered a lower revenue of RM181.7mil versus RM200mil a year ago mainly due to lower LNG carrier repair work.
MMHE managing director and CEO Wan Mashitah Wan Abdullah Sani said: “The outlook remains challenging for us with oil price not moving in line with the Opec and non-Opec voluntary cuts in production.
“Shale production activities is still robust resulting in a supply overload that will keep the price of oil subdued over the year and next. Deferment of upstream projects is expected to prolong and cost cutting measures will be further enhanced,” she said.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
