MMHE noted that crude oil price has not moved in line with the Opec and non-Opec voluntary cuts in production, not to mention that US shale production is still robust resulting in a supply overload that will keep the price of oil subdued over the year and next.
“Deferment of upstream projects is expected to prolong and cost cutting measures will be enhanced further,” MMHE said.
“While the group has successfully secured several contracts during the period, it is mindful that majority of the contribution will only be realised in 2018 and beyond,” the group said.
For the first half ended 30 June 2017, Kuala Lumpur-listed MMHE sank further into the red with a loss of MYR30.93m ($7.32m) compared to the deficit of MYR10.48m in the same period of 2016.
First half revenue dipped by 11% year-on-year to MYR493.11m due mainly to lower contribution from the heavy engineering business as most major projects are nearing completion while newly secured projects are still at their early stages.
MMHE’s marine business also saw lower contribution due mainly to reduced value of LNG vessel repairs, offset by improved margin from ongoing conversion projects.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
