KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) posted a net loss of RM104.35mil for the first quarter ended March 31,2021 (Q121) due to operating losses from both marine and heavy engineering segments.
The group’s revenue was down marginally 0.83% to RM343.57mil in the quarter compared to RM346.43mil a year ago dragged by lower revenue in the marine segment, which was partially offset by the higher revenue from heavy engineering segment.
In a filing with Bursa Malaysia, the group said “the heavy engineering segment posted a higher revenue of RM304.2mil against RM226.8mil reported in the corresponding quarter mainly due to increased activities in ongoing projects”.
Meanwhile, the marine segment posted lower revenue of RM39.4mil compared to RM119.7mil in the corresponding period a year ago due to lower number of vessels secured for repair and maintenance works.
“This was due to the limited volume of marine repair projects in the current market as a result of high charter rates offered for shipments during the prolonged winter period, ” the group noted.
Moving forward, MMHE is cautiously optimistic for its business prospects this year and into next year as volatile industry conditions and the on-going Covid-19 pandemic pose major risks.
Its managing director and CEO Pandai Othman said the recent recovery in oil prices have resulted in several deferred projects being revived.
“Nevertheless, the volatile industry condition and the wider lingering effects of the Covid-19 pandemic remain major risks moving forward, ” he said.
“As such, despite the oil market continuing to show signs of recovery from last year’s crisis, we maintain our cautiously optimistic stance regarding our business prospects throughout the year and into 2022, ” he added.
Moreover, the group expects the marine business to remain challenging as prospects of acquiring more marine repair projects is highly dependent on the reopening of borders and worldwide recovery from the pandemic.
As such, in order to grow the group’s orderbook, MMHE would continue to pursue business opportunities in other segments and new regions.