KUALA LUMPUR, July 30 — Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has narrowed its net loss to RM34.38 million in the second quarter (Q2) ended June 30, 2021 compared to a net loss of RM397.02 million in the same quarter last year.
Revenue jumped to RM302.45 million from RM155.31 million previously, due to higher revenue from both heavy engineering and marine segments, it said in a filing to Bursa Malaysia today.
It said the heavy engineering segment doubled its revenue to RM228.8 million from RM112.1 million reported in the corresponding quarter previously, mainly due to increased activities in the yard as the corresponding quarter’s activities were affected by the yard shutdown during the movement control order (MCO 1.0).
“The marine segment recorded a significant increase in revenue to RM73.7 million compared with RM43.4 million in the same quarter previously mainly due to higher revenue from dry docking services on liquefied natural gas (LNG) carriers in the current quarter,” it said.
At the operating level, MHB said the group recorded a lower loss of RM26.3 million against a loss of RM100.2 million in the corresponding quarter last year.
“The significantly higher loss in the corresponding quarter was mainly due to the impact of the yard shutdown during MCO 1.0 imposed by the government,” it added.
On prospects, the group said it remained committed to replenishing its order book by continuing to pursue business opportunities in other segments and new regions whilst maintaining efforts to ensure competitiveness in ongoing and future bids.
“The recent surge of other commodity prices such as steel due to pent-up demand and supply bottlenecks resulting from the pandemic may also unfavourably impact the viability and execution of new heavy engineering business prospects.
“Marine business prospects are expected to continue to be impacted by the nation’s prevailing stringent border restrictions as fierce competition to secure limited opportunities within the market will persist as foreign clients continue to opt for shipyards in countries with more relaxed border restrictions,” said MHB. — Bernama
