KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) slipped into the red with a net loss of RM122.69 million in the year ended December 31, 2018 (FY18) from a net profit of RM34.23 million a year ago.
In an exchange filing today, MHB attributed the net loss to the widened loss of its marine and engineering divisions.
MHB’s FY18 revenue increased 1.88 per cent to RM974.35 million from RM956.41 million in the same period a year ago due to significant drop in revenue following lower conversion works and dry docking activities.
For the fourth-quarter (Q4), the company recorded a net loss of RM25.22 million from a net profit of RM48.13 milliona year ago, while revenue increased 10 per cent to RM273.24 million from RM247.95 million.
MHB said it would remain prudent on the outlook for the industry in the near term given the uncertainties surrounding timing of capital spending by major oil and gas players.
“The outloook for marine business remains positive as global liquefied natural gas trade is expected to expand firmly driven by increase of exports from the US and Australia to Asia.”
The group had during the year secured a number of long term offshore fabrication frame agreements which are on call-out basis including the long term agreement signed with Saudi Arabian oil company, Saudi Aramco.
“These are expected to contribute positively to our group revenue in 2019 and beyond. We also remain committed to replenish our orderbook in various geographical areas,” it said.