KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd
(MMHE) recorded a leap in net profit in the second quarter ended June 30, 2026 (2QFY26), on the back of strong contribution from the heavy engineering segment as ongoing projects advanced into higher construction phases and post sail-away projects were finalised.
The group said net profit rose five-fold to RM60.59mil from RM10.06mil in the year-ago quarter as revenue increased to RM986.73mil from RM431.57mil previously.
It said the heavy engineering segment was the main contributor to this gain, recording revenue of RM870.2mil, which was RM560.2mil higher than in the corresponding quarter.
The segment registered an operating profit of RM62mil, as compared to just RM1.5mil in the corresponding quarter.
In the marine segment, operating profit dropped to RM7.5mil from RM11mil a year earlier, due to revenue decreasing RM5.1mil to RM116.6mil. This was primarily owing to the ower number of vessel repairs offset with higher revenue from conversion projects.
Meanwhile, the group's joint venture recorded a loss during the quarter as its conversion projects are currently in the early phase of execution.
Over the six-month period to June 30, 2026 (1HFY26), MMHE recorded a net profit of RM74.89mil, more than three times the net profit of RM22.29mil posted in 1HFY25.
Revenue rose to RM1.51bil from RM884.67mil over the same comparative period.
According to the group, the outlook on the global energy industry remains dynamic as it continues to navigate evolving geopolitical and economic uncertainties as
well as shifting investment priorities.
"Heightened concerns over energy security and supply reliability continue to influence capital allocation decisions, with selective investments in upstream developments and energy infrastructure are expected to support ongoing industry activity and create opportunities for the group."
Against this backdrop, the heavy engineering segment will maintain a strategic and selective approach to securing a high-quality order book across conventional and new energy sectors, both domestically and internationally, to support a balanced portfolio while maintaining strong project execution discipline.
Geopolitical conflict notwithstanding, the long-term marine repair demand is expected to remain resilient, underpinned by LNG carrier dry-docking requirements amidst growing importance of the LNG value chain.
The group will remain focused on strengthening its presence in targeted market segments while positioning itself to capitalise on evolving regional shipping patterns and emerging market opportunities.
It added that yard modernisation efforts are progressing steadily to further enhance productivity, operational efficiency and competitiveness, supporting the group's long-term growth prospects and its ability to deliver value-added solutions to its clients.
