KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd’s (MMHE) net losses narrowed in the second quarter ended June 30, 2021 while its revenue nearly doubled on the back of better performance from the heavy engineering and marine segments.
In a filing with Bursa Malaysia on Friday, MMHE said its revenue rose to RM302.45mil from RM155.31mil a year ago.
Its net losses narrowed to RM34.38mil from RM397.02mil a year ago. Loss per share was 2.1 sen compared with 24.8 sen a year ago.
Elaborating on the results, MMHE said at the operating level, it recorded lower loss of RM26.3mil compared with a loss of RM100.20mil a year ago.
“The significantly higher loss in the corresponding quarter was mainly due to the impact of the yard shutdown during the initial Movement Control Order 1.0 imposed by the government,” it explained. Its loss before tax decreased significantly to RM37.30mil against RM400.20mil a year ago.
MMHE explained this was due to lower impairment loss amounting to RM7.90mil recognised in the current quarter compared to RM300mil a year ago.
“The impairment loss recognised in the current quarter was attributable to the prolonged downturn in the offshore support vessel market due to the Covid-19 pandemic,” it said.
Its heavy engineering segment saw its revenue doubled to RM228.80mil from RM112.10mil a year ago mainly due to increased activities in in the yard. This was in contrast with a year ago during the MCO 1.0 when the shipyard was shut down.
The segment's operating loss of RM20.40mil in the current quarter shrank by RM49.60mil due to the higher revenue, compounded with the corresponding quarter recording additional cost provisions associated with the pandemic
As for its marine segment, revenue rose to RM73.70mil compared to RM43.40mil a year ago boosted by dry docking services on LNG carriers in the current quarter.
In tandem with the increased revenue, the segment recorded lower operating loss of RM4.90mil compared to RM30mil loss a year ago.