MMHE Q3 net loss at RM22.72m as heavy engineering under performs

KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) posted net losses of RM22.72mil in the third quarter ended Sept 30, 2018 due to losses in the marine division.

It said on Thursday the group's net losses were in contrast with the net profit of RM16.41mil a year ago. 

MMHE's revenue increased by 34.5% to RM289.80mil from RM215.35mil a year ago. Loss per share was 1.42 sen compared with earnings per share of 1.03 sen.

The heavy engineering division recorded a 52% increase in revenue of RM178.4mil mainly due to higher revenue from an on-going project during the quarter. 

However, the division posted wider operating loss of RM4.1mil compared with RM1.8mil a year ago due to additional cost provisions for on-going projects

As for the marine division, its revenue rose to RM111.4mil from RM97.7mil a year ago due to conversion works as well as dry docking activities 

However, it recorded RM16mil operating loss against RM17mil profit a year ago, mainly due to additional costs incurred on conversion works.

For the nine months ended Sept 30, 2018, its net losses widened to RM97.47mil from RM14.70mil in the previous corresponding period. Its revenue fell to RM701.11mil from RM708.46mil.

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