KUALA LUMPUR: Malaysia Marine and Heavy Engineering Bhd (MMHE) is cautious over its prospects as the current operating landscape remains uncertain amid the Covid-19 pandemic and rising commodities prices.
For the third quarter ended Sept 30, 2021, the group posted a net loss of RM23.88mil as compared to a net profit of RM2.64mil in the year-ago quarter due to operating losses in both marine and heavy engineering segments.
"At the operating profit level, the group recorded operating loss of RM20.2mil compared to an operating profit of RM2.5mil in the corresponding quarter," it said in a filing with Bursa Malaysia.
Revenue for the quarter was RM389.29mil, 5.37% lower than RM369.46mil in the comparative quarter.
The group recorded a loss per share of 1.5 sen for the quarter versus earnings of 0.2 sen per share in 3Q20.
According to MMHE, there remain concerns over a potential fourth global wave of Covid-19 infections, which could disrupt the progress of the recovery even as oil prices continue to rise amid increased demand.
Moreover, oil majors are expected to spend modestly given the high steel prices, which dampens the outlook on the heavy engineering segment.
On the marine segment, MMHE expects foreign clients to continue to send their vessels to shipyard in countries with more relaxed border restrictions.
LNG demand from Far East consumers is also expected to remain high during the upcoming winter despite the global gas price hike, increasing LNG trade, which will result in more LNG vessel owners deferring dry-docking.
"This would in turn lead to greater competition amongst shipyards for the limited dry-docking opportunities. As such, the Group expects the marine business to remain challenging," the group said.
On its plans moving forward, the group said it aims to replenish its order book through diversifying into new segments and new regions.
For the third quarter ended Sept 30, 2021, the group posted a net loss of RM23.88mil as compared to a net profit of RM2.64mil in the year-ago quarter due to operating losses in both marine and heavy engineering segments.
"At the operating profit level, the group recorded operating loss of RM20.2mil compared to an operating profit of RM2.5mil in the corresponding quarter," it said in a filing with Bursa Malaysia.
Revenue for the quarter was RM389.29mil, 5.37% lower than RM369.46mil in the comparative quarter.
The group recorded a loss per share of 1.5 sen for the quarter versus earnings of 0.2 sen per share in 3Q20.
According to MMHE, there remain concerns over a potential fourth global wave of Covid-19 infections, which could disrupt the progress of the recovery even as oil prices continue to rise amid increased demand.
Moreover, oil majors are expected to spend modestly given the high steel prices, which dampens the outlook on the heavy engineering segment.
On the marine segment, MMHE expects foreign clients to continue to send their vessels to shipyard in countries with more relaxed border restrictions.
LNG demand from Far East consumers is also expected to remain high during the upcoming winter despite the global gas price hike, increasing LNG trade, which will result in more LNG vessel owners deferring dry-docking.
"This would in turn lead to greater competition amongst shipyards for the limited dry-docking opportunities. As such, the Group expects the marine business to remain challenging," the group said.
On its plans moving forward, the group said it aims to replenish its order book through diversifying into new segments and new regions.
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