MMHE's net profit jumps to RM10.42mil in 1Q

KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) has affirmed efforts to improve its contracting strategies to mitigate risks as it expects supply chain disruptions and price escalations to continue.

Over the coming year, the group said it is well-positioned to capitalise on the increased spending of oil majors on upstream activities, given the crucial global energy security.

It said this was owing to oil prices being relatively stable over the past three months as a result of tighter global supply from the heightened geopolitical situation and the prospect of extended Opec+’s supply restrictions.

Additionally, it said the growth in low-carbon solutions in support of global net-zero ambitions will continue to create more business opportunities.

In the marine segment, MMHE said the greater demand for upstream activities will lead to more conversion projects.

Considering the stable oil and gas market, the group aims to broaden its customer base and seize opportunities in conversion projects.

"However, intense competition among peers remains a challenge given the increasing number of new LNGC-repair yards in neighbouring countries and China," said MMHE.

In the first quarter ended March 31, 2024, the group registered a net profit of RM10.42mil, a leap higher from RM3.54mil in the year-ago quarter.

Earnings per share rose to 0.7 sen from 0.2 sen previously.

Revenue in 1QFY24 more than doubled to RM984.47mil from RM496.23mil in the comparative quarter.

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MMHE , oil and gas , engineering , marine


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