Highlight Petronas unit Malaysia Marine 2Q profit falls 16% to RM40m

by **Cals** Wed 06 Aug 2014, 01:09

Highlight Petronas unit Malaysia Marine 2Q profit falls 16% to RM40m

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 05 August 2014 14:04

KUALA LUMPUR (Aug 5): Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) reported a 16% decline in second quarter net profit from a year earlier, as its offshore oil and gas structure construction, and ship repair units registered lower income.

MHB told the stock exchange today net profit declined to RM39.73 million in the second quarter ended June 30 this year from RM47.55 million. Revenue, however, rose to RM980.92 million from RM786.72 million.

"The group produced a lower profit before tax of RM25.7 million for the current quarter against RM52.7 million in the corresponding quarter, contributed by lower profit from offshore and marine (vessel repair) segments," MHB said.

MHB said its offshore structure unit had registered higher cost while the marine vessel repair division had seen lower profit margin.

MHB's cumulative first-half net profit dropped to RM74.36 million from RM98.15 million a year earlier. Revenue was lower at RM1.65 billion versus RM1.71 billion.

Looking ahead, MHB, which is bidding for offshore structure projects, said it expected competiton from global companies. Should MHB secures any projects, the company said the contracts would be awarded this year.

Competition is also seen in the marine vessel repair unit due to higher capacity in the region. But MHB said the medium-term outlook was deemed favourable due to more ships in the market, hence, demand for repair services.

MHB is a 66.5% subsidiary of MISC Bhd, which in turn, is a 62.67% unit of national oil company Petroliam Nasional Bhd (Petronas).