KUALA LUMPUR (Aug 22): Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) said trade tensions and policy changes are hurting investor confidence and could raise project costs and cause delays after its second-quarter net profit fell 86.4% year-on-year.
Net profit for the three months ended June 30, 2025 (2QFY2025) fell to RM10.06 million from RM73.92 million a year earlier due to significantly lower contributions from the group's main revenue contributor, the heavy engineering segment. Revenue for the quarter halved to RM431.57 million from RM900.03 million
The group told Bursa Malaysia that new heavy engineering projects are still starting and haven’t replaced the completed ones yet.
The group has secured two contracts from Vestigo Petroleum for building wellhead platforms and is currently working on three major projects at MMHE West and East yards for local and international clients. One project is nearly complete and ready for offshore installation and handover.
The group said despite the challenges, the heavy engineering segment remains supported by a stable order book and emerging opportunities in the new energy space, it said in a filing with the stock exchange regulator.
“The segment will continue to build a well-balanced portfolio by strengthening its foothold in conventional energy projects while progressively expanding into new energy projects. Ensuring project execution excellence remains a key priority to ensure timely and efficient project delivery,” said MHB.
The marine segment grew revenue by more than 30% thanks to higher vessel conversion and repair activities.
The group said the marine segment is performing steadily with regular vessel repair and conversion contracts, including more from international clients. It focuses on improving yard facilities, streamlining operations, and keeping up with changing rules and upgrades to stay competitive.
MHB, which is a subsidiary of MISC Bhd (KL:MISC), did not declare any dividend for the latest quarter.
For the first half of FY2025, MHB’s net profit dropped 73.6% to RM22.29 million from RM84.34 million, while revenue fell 53.1% to RM884.67 million from RM1.88 billion.
Shares of MHB settled one sen or 2.9% higher at 35.5 sen at Friday’s noon break, valuing the group at RM560 million.