MMHE Q1 earnings fall 39% to RM78.26m from yr ago

KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) reported a 39.1% decline in its earnings to RM78.26mil in the first quarter ended March 31, 2012 from RM128.64mil a year ago due to a weaker performance in its engineering and construction division.

It said on Wednesday that its revenue fell 27.9% to RM665.26mil from RM923.29mil. Earnings per share were 4.90 sen compared with 8.0 sen.

"Revenue reduction in engineering and construction from RM884.9mil to RM516.6mil was mainly due to no further recognition of revenue from EPC Turkmenistan Block 1, Phase 1 project in the current quarter as compared to the corresponding quarter," it said.

MMHE explained the project was novated to a jointly controlled entity, MMHE-TPGM Sdn Bhd with effect from Jan 1, 2011 and had since completed. However, the lower revenue was compensated by the other projects.

Its revenue from the marine conversion and repair improved from RM50.9mil to RM151.8mil mainly due to two conversion contracts and higher rigs and support vessels repairs contracts secured in the quarter.

"The operating profit for the marine conversion and repair improved during the quarter, amounting to RM10.3mil as compared to a loss of RM14.1mil in the corresponding quarter," it said.