Friday August 3, 2012
Malaysia Marine and Heavy Engineering profit down 30%
By THOMAS HUONG
PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) posted a 30% year-on-year drop in net profit to RM55.3mil for its second quarter ended June 20.
Revenue for the quarter increased slightly to RM965.7mil compared with RM957.8mil a year earlier.
The group told Bursa Malaysia the significant earnings drop was mainly due to the lower operating profit from its offshore segment, as its Turkmenistan Block 1 Phase 1 project had been completed.
For the six months ended June 30, the group posted a 35.8% year-on-year drop in net profit to RM133.6mil. Revenue was 13.3% lower at RM1.63bil.
On its prospects for this year, MMHE said its offshore segment was expected to benefit, through the replenishment of its order book, from a renewed focus on domestic exploration and production development and enhanced oil recovery initiatives.
MMHE said although cost pressure remained challenging, its offshore segment was expected to contribute positively to group earnings in 2012.
This is following the acquisition of Pasir Gudang fabrication yard, coupled with the novation of Kebabangan project from Sime Darby Engineering Sdn Bhd and the successful award of F14/F29 topside contracts, which are worth RM278mil, from Sarawak Shell Bhd.
The group expects the performance of its marine segment to remain satisfactory.
Managing director and chief executive officer Dominique de Soras said in a statement that MMHE had achieved two key corporate milestones in the first half of 2012.
These were the completion and successful loadout of the Kinabalu non-associated gas (NAG) Topside for Petronas Carigali Sdn Bhd, as well as the conversion of MISC Bhd's Tenaga Satu, a liquefied natural gas (LNG) vessel, into a floating storage unit (FSU) facility, now known as FSU Lekas.
De Soras said the Kinabalu NAG Topside was Malaysia's first high-temperature, high-pressure gas production topside and it was successfully fabricated at MMHE's West Yard.
“MMHE has also completed the first conversion into a FSU by a Malaysia-based company. This is among the first few of such conversions in the world. FSU Lekas now has an operational lifespan of 20 years without drydocking,” he said.