MMHE posts 3Q web lack of RM23.88mil, maintains cautious outlook

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KUALA LUMPUR: Malaysia Marine and Heavy Engineering Bhd (MMHE) is cautious over its prospects as the present working panorama stays unsure amid the Covid-19 pandemic and rising commodities costs.

For the third quarter ended Sept 30, 2021, the group posted a web lack of RM23.88mil as in comparison with a web revenue of RM2.64mil within the year-ago quarter attributable to working losses in each marine and heavy engineering segments.

“On the working revenue degree, the group recorded working lack of RM20.2mil in comparison with an working revenue of RM2.5mil within the corresponding quarter,” it stated in a submitting with Bursa Malaysia.

Income for the quarter was RM389.29mil, 5.37% decrease than RM369.46mil within the comaprative quarter.

The group recorded a loss per share of 1.5 sen for the quarter versus earnings of 0.2 sen per share in 3Q20.

In keeping with MMHE, there stay considerations over a possible fourth international wave of Covid-19 infections, which might disrupt the progress of the restoration at the same time as oil costs proceed to rise amid elevated demand.

Furthermore, oil majors are anticipated to spend modestly given the excessive metal costs, which dampens the outlook on the heavy engineering section.

On the marine section, MMHE expects international purchasers to proceed to sen their vessels to shipyard in international locations with extra relaxed border restrictions.

LNG demand from Far East shoppers can also be anticipated ro stay excessive in the course of the upcoming winter regardless of the worldwide gasoline worth hike, rising LNG commerce, which is able to reult in additional LNG vessel homeowners deferring dry-docking.

“This could in flip result in better competitors amongst shipyards for the restricted dry-docking alternatives. As

such, the Group expects the marine enterprise to stay difficult,” the group stated.

On its plans shifting ahead, the group stated it goals to replenish its order ebook by diversifying into new segments and new areas.



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