MMHE said in a stock market announcement that revenue fell 51.5% to MYR1.19bn from MYR2.46bn previously as the heavy engineering segment saw revenue fall by 63% from MYR1.99bn to MYR746.7m as the orderbook depleted and new orders dwindled.
For the fourth quarter, the loss widened from MYR27.1m to MYR119.7m and the revenue fell by more than half from MYR721.1m to MYR303.6m
Fourth quarter revenue from the heavy engineering segment plunged even more dramatically, falling 72% to MYR172.8m from MYR615.1m as the order backlog and new orders situation worsened.
The marine segment’s revenue and operating profit, however, was higher from a year ago, mainly due to higher value of vessels repaired from LNG and FPSO conversion works in the fourth quarter, MMHE said. Turnover rose from MYR106.0m in the fourth quarter of 2015 to MYR130.8m in the most recent corresponding period. For the full year however revenue from this segment was still lower, falling to MYR444.6m from MYR466.7m previously
Looking ahead, MMHE expressed concerns that oil output cuts would be kept. “NOCs and IOCs are expected to adopt the same strategy on deferment and scale-down of upstream projects for the major part of the year.
“Coupled with geopolitical risk, any meaningful recovery in the demand for offshore structures is not anticipated to materialise until 2018 at least,” md and ceo Wan Mashitah Wan Abdullah Sani said.
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