MMHE’s net profit dips 28.3% to RM79.02m

KUALA LUMPUR: Malaysia Marine and Heavy Engineering Bhd (MMHE) net profit for the three months ended June 30, 2011 fell 28.3% to RM79.02 million from RM110.25 million a year earlier, due mainly to the weaker performance of its marine repair and conversion segment.

Revenue for the quarter slipped to RM957.79 million from RM1.17 billion in 2010. Earnings per share was 4.90 sen, while net assets per share was RM1.49.

On its current year prospects, MMHE said on Tuesday, Aug 16 that overall upstream exploration and production activities by oil and gas companies would remain relatively strong and capital expenditure by Petronas was expected to trend upwards.

MMHE said it was well-positioned to benefit from these increased activities.

“Our engineering and CONSTRUCTION [] segment would continue to benefit from major projects such as the Gumusut-Kakap FPS, Kinabalu Topside and Turkmenistan Block 1 Phase 1.

“The performance of our marine repair and conversion segment is expected to improve,” it said.

MMHE on March 2, 2011 announced the change of financial year end from March 31 to Dec 31. The first new financial year would end on Dec 31, 2011 with a shorter 9-month period from April 1, 2011 to Dec 31, 2011.