KUALA LUMPUR: Malaysia Marine & Heavy Engineering Holdings Bhd
(MMHE) is focused on improving its contracting strategies through risk-sharing arrangements such as alliance concept, reimbursable or cost-plus basis.
It said this was in in response to challenging market conditions, such as geopolitical conflicts that are likely to continue affecting the supply chain, leading to price escalations and volatile operating landscapes.
For the heavy engineering segment, the group said upstream capital expenditure spending is expected to remain stable amid ongoing energy security concern and geopolitical conflicts, which will create opportunities for the group.
The group added that it aims to advance its growth by capitalising on the opportunities in both conventional and new energy sectors.
Meanwhile, the marine segment aims to expand its conversion portfolio given the uptick in upstream activities.
"The rapid expansion of LNG fleet would also benefit the group in repair and maintenance services, though this may be offset by the
expected deferment of LNGC dry-docking to meet robust demand in the upcoming winter," it said in its outlook accompanying its results filing with Bursa Malaysia.
In the third quarter ended Sept 30, 2024, the group posted a net profit of RM15.27mil, against a net loss of RM105.21mil in the year-ago quarter, which translates to an earnings per share of one sen against a loss per share of 6.6 sen.
The group reported revenue of RM906.46mil during the quarter compared to RM638.47mil in 3QFY23.
For the nine months period to Sept 30, 2024, the group said net profit was RM99.61mil as compared to a net loss of RM490.37mil, while revenue rose to RM2.79bil from RM2.19bil in the year-ago period.
