“We will continue to explore opportunities in both domestic and international markets with increased emphasis on decarbonisation and renewable energy,” CEO Pandai said.
KUALA LUMPUR: As Malaysia Marine and Heavy Engineering Holdings Bhd
(MMHE) navigates a challenging operating environment, tighter global oil supply and higher prices amid growing global demand may bolster capital expenditure spending beyond pre-pandemic levels, says managing director and chief executive officer Pandai Othman.
Reviewing the third-quarter results and outlook for the energy and marine solutions provider, Pandai said this was due to the recent conflict in the Middle East as well as the ongoing commitment by the Organisation of the Petroleum Exporting Countries and allies to reduce global oil supply. Meanwhile, he noted that there are also business opportunities in the renewable energy space, as environmental, social and governance (ESG) initiatives continue to gain in significance.
“We will continue to explore opportunities in both domestic and international markets with increased emphasis on decarbonisation and renewable energy,” he said in a statement.
In the third quarter ended Sept 30, 2023 (3Q23), MMHE posted a net loss of RM105.21mil, compared with a net profit of RM15.95mil in the corresponding quarter last year.
The group recorded a loss per share of 6.6 sen as compared with an earnings per share of one sen in 3Q22.
Revenue, however, was up to RM638.47mil from RM409.23mil previously due to contributions from new and ongoing projects.
For the nine-month period ended Sept 30, 2023, MMHE recorded a net loss of RM490.37mil versus a net profit of RM40.63mil in the corresponding period in 2022, while revenue rose to RM2.19bil from RM1.23bil in the comparative period.
MMHE continued to face headwinds to the completion of projects in its heavy engineering segment, leading to an operating loss of RM506.5mil due mainly to additional cost provision as a result of revised schedules and price escalation.
“The revised schedule has caused the extension of delivery dates of the ongoing projects, which was necessary to cater for the delayed onshore works,” it said.
For the marine segment, operating profit in the period under review fell to RM20.4mil from RM39.6mil previously, with the higher profit in the earlier period mainly contributed by the recovery of doubtful debts.
The group said its total assets and total equity at the end of the period under review stood at RM3.4bil and RM1.2bil, respectively.
