MALAYSIA Marine and Heavy Engineering Holdings Bhd (MHB) recorded a net profit of RM6.13 mil for the first quarter ended March 31, 2020 (1Q20), compared to a net loss of RM29.37 mil in 1Q 2019.
Revenue jumped to RM346.44 mil from RM203.11 mil previously, the group said in a filing with Bursa Malaysia today.
“The heavy engineering segment posted a higher revenue of RM226.8 mil in 1Q20 against RM125.4 mil in 1Q19, mainly contributed by higher revenue from ongoing projects.
“The segment reported an operating profit of RM1.2 mil in 1Q20 compared to an operating loss of RM23.9 mil in 1Q19, mainly due to reversal of cost provisions in the current quarter,” it said.
In a separate statement, managing director and CEO Wan Mashitah Wan Abdullah Sani said while the demand for oil storage, including floating storage and tankers, appears to have increased from the oil supply overhang, the outlook for marine repairs and dry-docking activities remains uncertain.
“Charter hire rates are expected to remain volatile amidst declining prospects for the global shipping and trade activities due to the current pandemic and oil price crash.
“Demand for liquefied natural gas which has been a contributing factor to growth in marine repair activity is also expected to experience a slowdown due to a significantly weakened economic outlook,” she said.
Moving forward, she said the company would continue to focus on optimising costs while improving project delivery and execution in order to maintain margins in the marine segment in the challenging market environment. — April 29, 2020, Bernama
