KUALA LUMPUR (Sept 3): Malaysia Marine and Heavy Engineering Bhd (KL:MHB) said it has entered into a partnership with HD Hyundai Marine Solution Co Ltd (HD HMS) to serve as the South Korean marine aftermarket engineering and technology company's partner in undertaking work related to green retrofit solutions.

MHB's wholly owned subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), has signed a two-year memorandum of understanding with HD HMS, with an option to extend for an additional two years, the group said in a filing with Bursa Malaysia.

Under the collaboration, MMHE will serve as HD HMS's partner for the installation of green retrofit within the Southern Asia region. This includes the process of updating and improving existing buildings, vessels, or infrastructure with technologies and practices that enhance energy efficiency, reduce environmental impact, and promote sustainability.

“By combining MMHE's expertise with HD HMS's cutting-edge design and system engineering capabilities, this collaboration aims to accelerate the integration of sustainable technologies in vessel operations, underscoring MMHE’s commitment to advancing maritime sustainability and reducing the industry's carbon footprint,” said MHB.

MMHE managing director and chief executive officer Mohd Nazir Mohd Nor said the collaboration aligns “perfectly with MMHE’s strategy” to diversify its portfolio by balancing traditional and clean energy opportunities.

“MMHE’s five decades of proven expertise in ship repair, retrofitting and conversion combined with HD HMS’s innovative green technologies, will significantly contribute to our customers’ decarbonisation efforts, propelling the maritime industry towards more sustainable practices,” Mohd Nazir added in a statement.

For the second quarter ended June 30, 2024, MHB returned to profitability with a net profit of RM73.92 million, compared with a net loss of RM388.7 million a year earlier.

Revenue, however, dropped to RM900.03 million from RM1.06 billion. This was attributed to reduced contributions from ongoing projects, many of which are nearing completion, while newly awarded projects are still in their early stages.

Shares in MHB closed 1.5 sen or 3.33% higher at 46.5 sen, giving the group a market capitalisation of RM744 million.