Update Malaysia Marine 4Q net profit rises 2% to RM102m, pays 5 sen dividend

by **Cals** Wed 12 Feb 2014, 03:04

Update Malaysia Marine 4Q net profit rises 2% to RM102m, pays 5 sen dividend

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 11 February 2014 14:02

KUALA LUMPUR (Feb 11): Malaysia Marine and Heavy Engineering Bhd (MHB) reported a 2% rise in fourth quarter net profit from a year earlier despite weaker financials at its core operating units.

In a statement to the exchange today, MHB which constructs oil and gas support structures, and repairs marine vessels, said net profit had risen mainly on deferred taxes and lower minority interest.

MHB said net profit rose 2% to RM102.03 million in the fourth quarter ended December 31, 2013 (4QFY13) from RM100.36 million. Revenue however fell to RM726.31 million from RM857.01 million.

Full-year net profit declined to RM236.47 million from RM242.01 million a year earlier. Revenue was lower at RM2.88 billion versus RM3.33 billion.

MHB said operating profit from its oil and gas structure construction unit had fallen on "higher-than-expected cost to complete the on-going projects" besides lower revenue.

Meanwhile, MHB said the vessel repair division's operating profit and revenue declined on "lower value of LNG (liquified natural gas) vessels repair works".

During 4QFY13, MHB's profit before tax fell to RM47.05 million from RM60.19 million a year earlier. The company registered higher deferred taxes of RM55.1 million versus RM41 million.

MHB plans to pay a dividend of five sen a share for the quarter in review.

Looking ahead, MHB said it would improve "it’s work processes, overall efficiency and cost estimation" to offer competitive bids for new contracts.

MHB said newly-secured offshore structure construction projects would contribute to the firm's future earnings.