KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) was profitable again in the third quarter (Q3) ended Sept 30, 2017, after seven consecutive quarterly losses.
The group posted a net profit of RM16.41 million compared with a net loss of RM4.53 million in the third quarter of 2016.
MHB attributed the profit to lower losses registered for the heavy engineering segment.
Its revenue, however, decreased 35.4 per cent to RM215.35 million from RM333.49 million in the same period last year.
For the nine-month period, its net loss narrowed to RM13.9 million from RM14.63 million, while revenue dropped 20.2 per cent to RM708.46 million from RM887.66 million.
In a filing to Bursa Malaysia today, MHB said its operating loss for the quarter was lower at RM1.8 million than the RM21.6 million loss posted in the corresponding quarter last year, mainly due to finalisation of completed projects in the current quarter.
For the marine segment, its operating profit of RM17 million was RM2.9 million lower than the corresponding quarter's profit of RM19.9 million, dragged down by lower value and number of vessels repaired.
MHB said while crude oil prices had slightly improved following OPEC and non-OPEC members' production commitment, the oil and gas outlook remains uncertain with heightened geopolitical concerns.
It said robust shale production activities will keep the price of oil subdued over a prolonged period.
“Nonetheless, the group remains committed to its strategy in managing costs, optimising its resources and improving operational efficiency to combat the challenging environment.
“Replenishment of order book from marine segment and offshore services are progressing and remain a priority,” it said.
MHB said while the group had secured several offshore fabrication projects during the period, the majority of the contribution will only be realised in 2018 and beyond.