KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd
(MMHE) posted a fourth quarter net profit of RM21.38mil, which was more than triple the net profit of RM6.18mil in the year-ago quarter on the back of improved profitability in its heavy engineering and marine segments.
The group's improved bottomline comes despite a drop in revenue to RM817.61mil in 4QFY24 as compared to RM1.12bil in 4QFY23, following a decline in revenue from the heavy engineering business.
Over the full financial year, MMHE posted a net profit of RM121mil as compared to a net loss of RM484.19mil in FY23, while revenue was RM3.61bil compared to RM3.31bil in the previous year.
In its results filing with Bursa Malaysia, MMHE said the heavy engineering segment registered a RM312.1mil decline in revenue to RM708.1mil in 4QFY24.
However, the segment's operating profit rose to RM22.6mil from RM7.4mil in the previous comparative quarter, due to the recognition of change order claims.
The group's marine segment, meanwhile reported a higher topline of RM109.5mil, compared to RM98.2mil in the previous corresponding quarter as a result of higher conversion activities.
The segment's operating profit rose in tandem to RM7mil, as compared to RM2mil in the year-ago quarter.
According to the group, it remains focused on pursuing contracts that are aligned with its strategic objectives while refining its contracting risk strategies to support sustainable performance and long-term growth.
For the heavy engineering segment, upstream capital spending in oil and gas is projected to grow steadily, while investment in renewable energy continues to rise.
"This growth positions the segment to leverage on opportunities across both conventional and emerging energy sectors to ensure a well-balanced portfolio," said MMHE.
Additionally, the increased investment in upstream activities is expected to create avenues for the marine segment to capitalise on conversion projects.
"Despite ongoing challenges such as intense competition, the segment will continue its efforts to secure key conversion and repair contracts and broaden its customer base to sustain business momentum and ensure stable income."
