Even though revenue fell by a fifth to MYR956.4m, overall performance was still better as the company got losses and costs under control.
For the fourth quarter revenue also slid slightly to MYR248m from MTR303.6m previously but the bottomline turned to a net positive of MYR48.1m from a MYR119.7m loss previously.
MMHE noted that there would be revenue recognised from new projects this year and the finalisation of completed projects would also boost earnings in the heavy engineering segment.
Meanwhile marine segment revenue fell 18% to MYR365.1m in 2017 mainly due to lower contract value and number of vessels repaired. In line with this, the segment recorded a lower pre-tax profit of MYR52.8m compared to MYR88.5m in the previous year.
On its prospects, MMHE said: “There has been a steady rise in the oil price in recent months, consistent with the tightening global oil production and escalating geopolitical risks. However, sustainability of the price will depend on oil producers remaining committed to the oil production cut.”
Looking ahead it said: “The group remains cautious on the outlook for the industry in the near term. There is still uncertainty as to the industry's capital spending.”
MMHE noted that during the year the group had secured a number of offshore fabrication projects which are expected to contribute positively to its revenue in 2018 and beyond.
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