KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Berhad (MMHE) posted a net profit of RM73.9 million in the second quarter (2Q) ended June 30, 2024, compared to a net loss of RM388.7 million in the same period last year.
Revenue, however, fell by 14.8 per cent at RM900 million versus RM1.06 billion last year, according to the company's filing with Bursa Malaysia.
Culmulatively, MMHE reported a net profit of RM84 million in the first half of financial year 2024 (1HFY24) versus RM385 million in net loss in the same period last year, while its revenue jumped 21 per cent to RM1.88 billion from RM1.55 billion a year ago.
MMHE's total assets and total equity at the end of the period under review stood at RM3.9 billion and RM1.4 billion, respectively, it said.
The company's managing director and chief executive officer Mohd Nazir Mohd Nor anticipates stable oil prices for the remainder of the year, supported by tightening supply from OPEC+ extended production cuts amidst weak demand growth and persistent geopolitical risks.
He said the investments in upstream exploration and production remain attractive to oil majors in light of sustaining energy security.
Nazir noted that MMHE is exploring a balanced portfolio in both conventional and clean energy spaces given the surging demand for low-carbon solutions as countries aim to reach ambitious net zero targets.
The investment by oil majors in upstream activities is poised to present the marine segment with opportunities in conversion projects, he said.
"We aim to broaden our liquefied petroleum gas carrier (LNGC) customer base considering the growing number of carriers in the market.
"However, intense competition amongst peers remains a challenge given the emergence of new LNGC repair yards in neighbouring countries and China," he said.
Nazir said that the ongoing geopolitical conflicts and unpredictable operating landscapes have led to supply chain disruptions and price volatilitythus.
He said the company will continue all efforts to improve contracting strategies to mitigate these risks.