KUALA LUMPUR (June 11): Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) said on Thursday its unit has been sued for RM54.01 million by a contractor over the alleged wrongful termination of a contract.

In a filing with Bursa Malaysia, the offshore engineering and marine services group said its wholly-owned subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), has been served with a writ and statement of claim by Solution Technologies Sdn Bhd.

The claim relates to alleged losses arising from the termination of a purported contract involving transportation and installation works under an engineering, procurement, construction and installation (EPCI) package for the Joint Development Area Field Development Project (Phase 6).

Solution Technologies is a service provider in the offshore oil and gas industry, focusing on transportation and installation works, pipe laying and related T&I activities, as well as shipbuilding.

It is seeking RM54.01 million in special damages, covering, among others, project administration costs, payments to sub-vendors, salaries of project management and engineering teams, as well as claims for loss of profit, loss of opportunity, and general and aggravated damages.

MHB said MMHE had filed its memorandum of appearance on June 4 and will take all necessary steps to oppose the claim and protect its interests.

The group added that there is no financial or operational impact at this stage arising from the legal action.

MHB reported a nearly 17% increase in net profit to RM14.3 million for the first quarter ended March 31, 2026, driven by stronger performance of its heavy engineering segment, which offset weaker results from its marine business due to lower revenue from conversion projects. This was on 15% higher revenue of RM521.9 million for the quarter.

Shares of MHB fell one sen, or 2.8%, to close at 34.5 sen on Thursday, giving the group a market capitalisation of RM552 million.