KUALA LUMPUR (Nov 14): Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) reported an 85.1% surge in third-quarter net profit, supported by better project finalisation in its heavy engineering segment, even as group revenue more than halved.

The group posted a net profit of RM28.27 million for the third quarter ended Sept 30, 2025 (3QFY2025), up from RM15.27 million a year earlier. Earnings per share rose to 1.8 sen from one sen during that period.

In a filing with Bursa Malaysia on Friday, MHB said the heavy engineering segment delivered an operating profit of RM27.8 million, compared with RM19.5 million in 3QFY2024, mainly due to favourable finalisation of completed projects.

This came despite segment revenue falling sharply to RM393.8 million from RM799.9 million a year earlier as projects approached completion and newly secured jobs remained in early execution stages.

Group revenue declined 43.8% to RM509.86 million in 3QFY2025 from RM906.46 million a year earlier.

No dividend was declared for the current quarter.

For the cumulative nine months ended Sept 30, 2025 (9MFY2025), MHB’s net profit dropped 49.2% year-on-year to RM50.56 million, weighed down by lower activity levels as new projects were still ramping up. Revenue for the period fell to RM1.39 billion, nearly half of RM2.79 billion in 9MFY2024.

The group said it remains focused on safe execution and timely delivery in the heavy engineering segment, while pursuing additional domestic and international opportunities, including in new energy.

Its marine segment is expected to maintain steady performance, supported by efforts to raise operational efficiency and enhance yard capabilities.

On its subcontract works for offshore high-voltage direct current platforms under TenneT TSO GmbH’s 2GW programme, MHB said Petrofac Ltd disclosed to the London Stock Exchange on Oct 23 that TenneT had terminated Petrofac’s scope of work with immediate effect.

However, MHB noted the announcement did not specifically refer to its subcontracts with Petrofac International (UAE) LLC, a subsidiary of Petrofac, and said TenneT is undertaking a novation process to ensure continuity. MHB continues to perform its obligations and expects the subcontracts to contribute positively to earnings through FY2025 and until completion.

At the noon market close on Friday, MHB shares were one sen or 2.74% lower at 35.5 sen, valuing the group at RM568 million. The stock has fallen 8.97% so far this year.