Malaysia Marine and Heavy Industries Berhad recorded a revenue of RM906.5 million in the current quarter, an increase of RM268.0 million from the RM638.5 million in the corresponding quarter which it said was due to higher revenue from its marine and heavy engineering segments.
At the operating profit level, the Group achieved an operating profit of RM20.8 million, reflecting an improvement of RM121.0
million compared to the operating loss of RM100.2 million in the corresponding quarter, contributed by the improved performance from both Heavy Engineering and Marine segments
As for the nine months, the group revenue of RM2,791.0 million is RM600.0 million higher than the corresponding period revenue of RM2,191.0 million, driven by significant increase in revenue from both segments. At the operating profit level, the Group reported an operating profit of RM114.3 million in the current period against an operating loss of RM478.6 million in the corresponding period mainly due to improved in performance of Heavy Engineering segment coupled with higher contributions from Marine segment.
On outlook for rest of the year, the group said for the Heavy Engineering segment, upstream capital expenditure spending is expected to remain stable amidst ongoing energy security concern and geopolitical conflicts which will create opportunity for the Group. While demand for oil and gas remains strong in the era of energy transition, the Group 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. Nevertheless, the Group foresees stiff competition to persist in the Marine business with the Chinese and neighbouring yards.
The group added that the current geopolitical conflicts are likely to continue affecting supply chain, leading to price escalations and volatile operating landscapes. The Group remains focused on improving its contracting strategies through a risk sharing arrangement such as alliance concept, reimbursable or cost-plus basis, in response to these challenging market conditions.
