MMHE hit by losses in marine and engineering sectors
KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) recorded a net loss of RM 104.35 million for the first quarter ended March 31, 2021 (Q121) due to operating losses in the marine and heavy engineering segments.
The group’s revenue fell slightly by 0.83% to RM 343.57 million in the quarter from RM 346.43 million a year ago, due to lower revenues from the maritime segment, which was partially offset by higher revenues from the heavy engineering segment.
In a filing with Bursa Malaysia, the group stated that “the heavy engineering segment posted higher revenue of RM 304.2 million compared to RM 226.8 million reported in the corresponding quarter, mainly due to increased activities in ongoing projects “.
Meanwhile, the maritime segment recorded a decrease in revenue of RM 39.4 million compared to RM 119.7 million in the corresponding period a year ago due to a lower number of secured vessels. for repair and maintenance work.
“This was due to the limited volume of marine repair projects in the current market due to the high charter rates offered for shipments during the extended winter period,” the group noted.
Looking ahead, MMHE is cautiously optimistic for its business outlook this year and next, as volatile industry conditions and the ongoing Covid-19 pandemic pose major risks.
Its chief executive and CEO, Pandai Othman, said the recent recovery in oil prices had prompted the relaunch of several deferred projects.
âNonetheless, the volatile state of the industry and the broader lingering effects of the Covid-19 pandemic remain major risks for the future,â he said.
“As such, although the oil market continues to show signs of recovery from last year’s crisis, we maintain our cautiously optimistic stance on our business outlook throughout the year and into 2022.” , he added.
In addition, the group expects maritime activity to remain difficult, as prospects of acquiring more marine repair projects depend heavily on reopening borders and the global recovery from the pandemic.
Thus, in order to develop the group’s order book, MMHE would continue to seek business opportunities in other segments and new regions.