MMHE said the evolving landscape presented both challenges and opportunities for the marine segment.
PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd
(MMHE) expects the ongoing trade war and potential tariff escalations to reshape global trade dynamics, disrupting supply chains and contributing to shifting macroeconomic conditions.
In a filing with Bursa Malaysia, the shipbuilding and heavy engineering industries company said the developments are prompting a more cautious investment climate.
“Despite this challenging environment, the heavy-engineering segment remains supported by a healthy order book and growing opportunities in the new energy sector.
“Leveraging on our technical expertise and industry experience, the segment will continue to sustain our presence in conventional energy while driving growth in new energy sectors to maintain a well-balanced portfolio,” the company said.
For the first quarter ended March 31, MMHEs net profit rose to RM12.24mil from RM10.42mil in the previous corresponding quarter.
MMHE said the decline was mainly due to the recognition of change-order claims in the heavy-engineering segment during the preceding quarter.
“In the quarter, operating profit was supported by the successful close-out of post-sail-away projects upon the achievement of key milestones.
“The group’s revenue dropped to RM453.1mil from RM984.47mil a year earlier, mainly due to lower revenue from the heavy-engineering segment as most of the ongoing projects near completion, while newer projects are still at early stages,” the company said.
Separately, MMHE said the evolving landscape presented both challenges and opportunities for the marine segment.
“To seize these opportunities and navigate ongoing headwinds, the segment is enhancing yard capabilities, exploring strategic partnerships, and expanding its market presence to secure more high-value repair and conversion projects.”
