Research houses expect oil crisis to affect MMHE

Following the suspension of works at its yard during the MCO and potential tender destruction from the recent oil crisis, Maybank IB Research has cut MMHE’s earnings by 16% to 27% for financial year ending Dec 31,2020 (FY20) to FY22 estimate.

KUALA LUMPUR: Brokerage firms expect Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) to face poor contract wins, high execution risks and margin compression to existing work orders from the disruption in the supply chain amid the movement control order (MCO) and oil crisis.

MMHE was granted approval to operate at limited capacity since April 16.