LNG carrier repair specialist Malaysia Marine and Heavy Engineering fell into the red during 2016 due to the oil and gas industry downturn.
MHB posted a pre-tax loss of 135 million ringgit ($30.4m) for the twelve months that ended December 31, 2016, as compared to a 22.5 million ringgit profit the year before.
The company said on Tuseday there was a provision for impairment on the group’s assets amounting to 140.5 million ringgit in 2016.
“This is taken in view of the continued depressed outlook of the oil and gas industry with the drop in the crude oil prices,” MHB said.
Revenue dropped 51.6 percent to 1.19 billion ringgit in 2016.
For the fourth quarter of 2016, net loss widened to 119.7 million ringgit, while revenue fell by more than half to 303.6 million ringgit.
During 2016, MHB completed the repair and life extension project of the LNG tanker Puteri Zamrud, as well as the drydocking and repair of the Hyundai Technopia and the Hyundai Ecopia, the company noted in its report.
“We remain focused on cost management and resource optimisation to reduce our operating cost in line with the outlook of the industry. In addition, we continue to intensify our effort to replenish our orderbook, namely from onshore segment, hook-up & commissioning and facilities improvement”, said Cik Wan Mashitah Wan Abdullah Sani, chief executive of MHB.
1 Malaysian ringgit = 0.225225 U.S. dollars
LNG World News Staff