LNG carrier repair specialist Malaysia Marine and Heavy Engineering reported a profit during the fourth quarter of 2017 despite a lower revenue.
MMHE reported a net profit of 47.13 million ringgit ($12.07m) for its fourth quarter versus a net loss of 119.7 million ringgit in the same quarter last year.
The company’s quarterly revenue fell to 247.9 million ringgit from 303.6 million ringgit a year ago.
For the full-year of 2017, MMHE posted a net profit of 32.4 million ringgit from a net loss of 134.5 million ringgit in the preceding year. Revenue stood at 956.4 million ringgit as compared to 1.19 billion ringgit the year before.
Overall, profit has returned to the black in the current year due to no additional impairment compared to an impairment of 141 million ringgit recorded in the prior year, MMHE said.
The heavy engineering business unit recorded a revenue of 591.3 million ringgit against 746.6 million ringgit in the prior year.
MMHE said several offshore projects were completed in the first half of this year while revenue from new projects will be mainly recognised in 2018 onwards.
The heavy engineering business also completed the turret system for the second Petronas floating LNG unit. Petronas PFLNG 2 turret for SOFEC Inc sailed away on December 2, according to MMHE.
The marine business unit registered a lower revenue of 365.1 million ringgit compared to 444.6 million ringgit in the prior year, mainly due to lower value and number of LNG carrier drydocking repairs carried out in the year, the company 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,” said Managing Director and Chief Executive Officer, Cik Wan Mashitah Wan Abdullah Sani.
“We remain cautious on the outlook for the industry in the near term. There is still uncertainty as to the industry’s capital spending,” he said.
Cik Wan Mashitah added that the company would continue its efforts on cost management and resource optimisation and “is committed to its key strategies including strengthening its position in existing markets as well as expanding into new markets.”
LNG World News Staff