MMHE West Yard, Pasir Gudang, Johor.
PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd
(MMHE), via its wholly-owned and major subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd, has secured a RM1.5bil award to build an offshore substation (OSS) high voltage direct current platform consisting of topside and jacket from Petrofac International (UAE) LLC.
In a filing with Bursa Malaysia, the group said the project, named the Nederwiek 1, underscored MMHE’s commitment to sustainable energy infrastructure development.
“Serving as a vital component of TenneT’s 2GW programme in the Netherlands, the OSS reaffirms its pivotal role in advancing clean energy solutions,” it said in the statement.
The OSS platform comprised a topside weighing 30,000 tonnes (including equipment) and a jacket weighing 10,000 tonnes.
“Under this project, MMHE is responsible for the construction engineering, fabrication, mechanical completion, load out and sea fastening, and architectural works on an engineering, procurement and construction basis.”
According to MMHE, the duration of the platform project is 36 months, with fabrication to begin in 2025 and completed by 2028.“This latest endeavour builds upon MMHE’s demonstrated commitment and capability, having secured the first subcontract for the IJmuiden Ver Alpha project in November 2023 from Petrofac.
“In addition, MMHE and Petrofac will collaborate towards the possibility of another OSS of similar size,” it said in the statement.
Managing director and chief executive officer Mohd Nazir Mohd Nor said the contract win is a crucial milestone for the group.
“It signifies our contribution to TenneT’s significant 2GW programme in the Netherlands, supporting the rapid development of large-scale offshore wind infrastructure projects which are crucial to Europe’s energy transition.
“We extend our heartfelt gratitude to our client, Petrofac, for entrusting us to be a part of this monumental project and for their confidence in our abilities,” Mohd Nazir said
Additionally, he said MMHE remained steadfast in ensuring the success of the project, adding that the group aimed to contribute to a cleaner and more sustainable future.
For the first quarter ended March 31, 2024 (1Q24), MMHE’s net profit nearly tripled from a year earlier, underpinned by higher revenue from ongoing projects, as well as increase in dry-docking and repair activities.
In 1Q24, its net profit rose to RM10.42mil from RM3.54mil in the previous corresponding period, while revenue almost doubled year-on-year to RM984.47mil from RM496.23mil.
In a statement on its 1Q24 earnings, it noted that oil prices have been relatively stable the past three months as a result of tighter global supply from heightened geopolitical situation.
Also, there are prospects of extended Organisation of the Petroleum Exporting Countries and allies’ supply restrictions which will spur oil majors spending on capital expenditure for upstream activities given the crucial global energy security issue. Additionally, it said growing low-carbon solutions, in supporting the global net-zero ambitions would, continued to create more business opportunities.
“As such, the group is well-positioned to capitalise on these favourable trends to achieve a balanced portfolio in both the conventional and clean energy spaces,” it said.
