PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) posted a net profit of RM9.28 million in the fourth quarter ended Dec 31, 2019 compared with a net loss of RM25.22 million a year ago, underpinned by contribution from the marine segment.
Its revenue of RM275.64 million was a marginal increase from RM273.24 million in the corresponding quarter last year.
The marine segment reported an operating profit of RM5.2 million during the quarter against a loss of RM33 million previously.
However, the heavy engineering segment saw an operating loss of RM10.3 million versus RM1.6 million profit in the same quarter a year ago.
For the full-year period, MMHE’s net loss narrowed to RM34.22 million from RM122.69 million, while revenue rose 3.6% to RM1.01 billion from RM974.35 million.
The group said there were modest signs of oil price recovery throughout the year, rising towards the end of the fourth quarter due to de-escalating trade tensions following a positive phase one trade talk between the US and China and further production cuts by OPEC.
However, outlook is expected to remain uncertain in light of continuing sluggish global economic growth, geopolitical instability, oil demand disruptions, growth in US shale oil production and the intensifying coronavirus outbreak.
“As such, the group remains prudent on the outlook for the heavy engineering business in the near term amidst uncertainties surrounding the timing of capital spending by major oil and gas players.
“The group is cautiously optimistic on the outlook for the marine business in view of the expected global LNG expansion driven by an increase in exports from Qatar, Australia, Russia and the US to the Asia Pacific market,“ MMHE said.
In view of the implementation of the International Maritime Organisation requirements on Jan 1, 2020, MMHE expects no further deferment of dry docking activities by ship owners in 2020.
Meanwhile, the group said it remains committed to replenishing its order book by expanding its footprint in various geographical areas and diversifying into new business opportunities.
