KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) ( Financial Dashboard) reported a 55% drop in second quarter net profit from a year earlier, on lower income from its oil and gas structure construction unit.
In a statement to the exchange today, MHB (fundamental: 1.4; valuation: 1.1) said net profit fell to RM18.03 million in the second quarter ended June 30, 2015 (2QFY15), from RM39.73 million. Revenue was lower at RM582.14 million, versus RM980.92 million.
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“Offshore registered lower revenue and operating profit, as most projects have been completed or sailed away. In addition, the newly-secured projects are still at the early stage of its project life cycle.
“Marine’s revenue and operating profit is higher against corresponding quarter, mainly due to higher value of vessels repaired, especially from rigs/special Vessels, FSU (floating storage unit) and general cargo categories,” MHB said.
Cumulative 1HFY15 net profit fell to RM54.05 milllion, from RM74.36 million a year earlier. Revenue was lower at RM1.3 billion, as compared to RM1.65 billion.
MHB is a 66.5%-owned subsidiary of MISC Bhd ( Financial Dashboard), which in turn is 62.67%-owned by Petroliam Nasional Bhd.
Looking ahead, MHB said it was mindful of uncertainties in the oil and gas industry, amid low crude oil prices.
The company said it had seen projects being deferred, due to the uncertainties.
“For the offshore business, the company continues to enhance its cost-saving initiatives to mitigate the impact of the current adverse cycle,” MHB said.
At 12:30pm, MHB shares rose three sen or 3% to settle at RM1.18, for a market value of RM1.89 billion.
The stock had fallen 34% this year, underperforming the FBM KLCI’s 3% decline.
