MMHE Q2 profit falls 14% to $14.5m

Revenue also fell 18% to MYR786.72m from RM965.71m in the previous corresponding period.

For first six months, net profit fell 26% to MYR98.14m from MYR133.58m a year ago although revenue rose 4.8% to MYR1.71bn from MYR1.63b a year ago.

Lower operating profit for MMHE's offshore segment was due to its newly secured Malikai TLP project having yet to recognize any profit due to its early stage of progress and provisions for higher expected costs for an on-going project, the group said.

MMHE likewise blamed poor operating profit in the marine segment on timing issues with newly secured rig repair jobs which are currently at an early stage of progress.

Moving forward, MMHE said it continues to actively participate in tenders for prospective offshore development projects both in domestic and regional market, although order intake has not met expectations as clients are taking longer to come to final investment decisions on projects.

Meanwhile tough competition from regional and domestic players is expected to squeeze profit margins and the group expects performance in the offshore business to be challenging.

Add Seatrade Maritime News to your Google News feed.