KUALA LUMPUR: Malaysia Marine and Heavy Engineering Bhd (MMHE) said the investment by oil majors in upstream activities is poised to present the marine segment with opportunities in conversion projects.
In a filing with Bursa Malaysia, the group said it aims to broaden its 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," it added.
Meanwhile, the group said it will continue to improve its contracting strategies to mitigate the risks of the ongoing supply chain disruptions and price volatility.
In the second quarter ended June 30, 2024, MMHE posted a net profit of RM73.92mil, a swing into the black from a net loss of RM388.7mil in the year-ago quarter.
This translated to an earnings per share of 4.6 sen as compared to a loss per share of 24.3 sen in 2QFY23.
The group recorded revenue of RM900.03mil, down from RM1.06bil in the comparative quarter.
According to MMHE, the improvement to its bottomline was mainly owing to the operating profit of RM67.7mil in its heavy engineering segment, as compared to an operating loss of RM390mil in 2QFY23.
"The operating profit was largely due to the recognition of cost recovery claims while the operating loss suffered in the corresponding quarter was mainly attributed to additional cost provisions resulting from the revised schedule for ongoing projects," it said.
For the six months period to June 30, 2024, the group registered a net profit of RM84.34mil, as compared to a net loss of RM385.16mil in 1HFY23, while revenue came to RM1.88bil against RM1.55bil in the year-ago period.
