KUALA LUMPUR (Nov 13): Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) returned to the black in the third quarter ended Sept 30, 2024 (3QFY2024), as revenue jumped 42% year-on-year, thanks to improved performance of both its heavy engineering and marine segments.

The group reported a quarterly net profit of RM15.27 million, against a net loss of RM105.21 million in 3QFY2023, with revenue rising to RM906.46 million from RM638.47 million, it showed in a bourse filing on Wednesday. No dividend was declared.

The heavy engineering segment's turnover for 3QFY2024 rose to RM799.9 million from RM570.2 million in 3QFY2023, on higher contributions from ongoing projects. The segment achieved an operating profit of RM19.5 million for 3QFY2024, due to project close-out and favourable impact from project hedging. In contrast, the group incurred an operating loss of RM107.7 million in 3QFY2023, which it blamed on additional cost provisions due to price escalation for ongoing projects.

The group's marine business also logged a higher revenue of RM106.5 million, compared with RM68.2 million previously, due to increased dry-docking and repair services, with operating profit rising to RM11 million from RM4.4 million. 

For the first nine months ended Sept 30, 2024 (9MFY2024), the group made a net profit of RM99.61 million, as opposed to a net loss of RM490.37 million in 9MFY2023, as revenue rose to RM2.79 billion from RM2.19 billion.

Going forward, the group said upstream capital expenditure spending is expected to remain stable, amid ongoing energy security concerns and geopolitical conflicts, which will create opportunities for the group in the heavy engineering segment.

"While demand for oil and gas remains strong in the era of energy transition, the group aims to advance its growth by capitalising on opportunities in both conventional and new energy sectors," it said.

Meanwhile, the group said its marine segment aims to expand its conversion portfolio, given the uptick in upstream activities. "The rapid expansion of the liquefied natural gas (LNG) fleet would also benefit the group in repair and maintenance services, though this may be offset by the expected deferment of LNG carrier dry-docking to meet robust demand in the upcoming winter. Nevertheless, the group foresees stiff competition to persist in the marine business with the Chinese and neighbouring yards," it added.

MHB is a global provider of energy and marine solutions for both offshore and onshore facilities and vessels. It owns the largest fabrication yard in Malaysia and Southeast Asia, as well as operates three of the largest dry docks in Southeast Asia.

At time of writing on Wednesday, MHB’s share price was unchanged at 44 sen, valuing the company at RM696.18 million.