MMHE Q3 earnings up on offshore ops

  • Business
  • Wednesday, 23 Oct 2013

PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd’s (MMHE) earnings for the third quarter (Q3) ended Sept 30, 2013 more than quadrupled, thanks to the turnaround in its offshore business.

In its filing with Bursa Malaysia, the oil and gas engineering and construction company reported an increase in net profit to RM36.43mil, which translated into an earnings per share (EPS) of 2.3 sen, compared with RM8.06mil, or an EPS of 0.50 sen, in the previous corresponding quarter.

“During the quarter, offshore registered an operating profit against the corresponding quarter’s operating loss.

The corresponding operating loss was caused by a higher than expected cost from an ongoing conversion project undertaken,” MMHE explained.

Group revenue, however, declined 46.5% to RM449.66mil in Q3 from RM841.78mil in the previous corresponding period.

MMHE said revenue for offshore was lower as projects in hand, except for those awarded in the current year, were nearing completion with relatively lower value of progress claims remaining.

For the quarter under review, the group had successfully loaded out the Damar Topside and Jacket for Exxon Mobil Exploration and Production Malaysia Inc and the F14 Jacket for Sarawak Shell Bhd.

For the nine-month period, MMHE’s earnings fell 4.9% to RM134.58mil, or 8.4 sen per share, from RM141.64mil, or 8.9 sen per share, in the previous corresponding period.

Its revenue fell 12.7% to RM2.16bil from RM2.47bil.

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