KUALA LUMPUR (Feb 19): Energy and marine solutions provider Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) saw its net profit more than triple for the fourth quarter ended Dec 31, 2024 (4QFY2024), driven by a recognition of change order claims in the heavy engineering segment.

Net profit for the quarter rose to RM21.38 million from RM6.18 million a year earlier. This was despite revenue falling 26.9% year-on-year to RM817.61 million from RM1.12 billion, as several ongoing projects neared completion, leading to lower activity.

This resulted in a higher earnings per share of 1.3 sen for 4QFY2024, from 0.4 sen for 4QFY2023.

No dividend was declared for the current quarter under review.

For the full year (FY2024), MHB returned to the black, booking a net profit of RM121 million compared with a net loss of RM484.19 million in FY2023. Revenue also increased 9.04% to RM3.61 billion from RM3.31 billion in the previous year.

Looking ahead, MHB managing director and chief executive officer Mohd Nazir Mohd Nor said the heavy engineering segment is expected to benefit from steady growth in upstream capital spending in oil and gas, alongside rising investments in renewable energy.

“This positions us to leverage opportunities across both conventional and emerging energy sectors, ensuring a well balanced portfolio,” he said in a statement on Wednesday.

The marine segment is also set to capitalise on conversion projects, supported by higher investments in upstream activities, he added.

"Despite ongoing challenges such as intense competition, MHB remains committed to securing key conversion and repair contracts and expanding its customer base to sustain business momentum and ensure stable income.

“Given the unpredictable operating landscape and challenging market conditions, we remain focused on pursuing contracts that are aligned with our strategic objectives while refining our contracting risk strategies to support sustainable performance and long-term success.” Mohd Nazir said.

At 2.05pm on Wednesday, shares of MHB slipped half a sen or 1.3% to 38 sen, giving it a market capitalisation of RM616 million. The stock has fallen 2.56% so far this year and 20.83% over the past 12 months.