MMHE net profit up 4%

KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd’s (MMHE) net profit for the first quarter ended March 31, 2015 increased 4% to RM36.03mil, from RM34.63mil a year ago on the back of higher revenue from the group’s offshore and marine divisions.

In an announcement to Bursa Malaysia, MMHE said on Monday that the group’s revenue for the quarter jumped 7.2% to RM719.50mil compared to RM671.46mil in the corresponding period a year ago.

Meanwhile, its offshore segment posted higher revenue from the progress of the on-going SK316 project for the quarter.

“The group has successfully loaded out SK316 jacket to Petronas Carigali Sdn Bhd,” the company said.

Furthermore, MMHE added that the marine division posted a higher revenue and operating profit due to higher value for vessels repaired from rigs, floating storage unit and general cargo categories.

Going forward, the company said the outlook for the oil and gas sector remains challenging due to falling oil prices. Hence, MMHE noted it is cautious on its spending while it continues to collaborate projects domestically and internationally.

“Given the budget tightening, orderbook replenishment will be a challenge. However, management is reasonably optimistic that oil prices will eventually recover,” MMHE added.