Malaysian shipbuilder's earnings plummet
Wednesday, 22 February 2012 | 12:48
Malaysia Marine and Heavy Engineering (MMHE) posted huge decline in earnings in the quarter ended 31 December 2011 due mainly to lower contributions from its engineering and construction segment.
The Malaysian shipbuilder recorded net profit of MYR43.03m ($14.26m) during the quarter, a drop of 67.8% compared to MYR133.68m in the same period a year ago. Revenue stood at MYR716.15m compared to MYR1.32bn a year earlier.
The latest quarterly results also rounded up MMHE's first new financial year that ended on 31 December 2011 instead of 31 March each year. Due to the change, the first new financial year has a shorter nine-month period from 1 April 2011 to 31 December 2011.
MMHE posted an annual 2011 net profit of MYR202.52m and revenue of MYR2.14bn, both of which are lower compared to the corresponding period of 2010.
Operating profit for its marine conversion and repair segment was reduced during the nine-month period largely because of “higher operating profit in the corresponding period due to a reversal of foreseeable losses for prior year conversion work as well as finalisation for major completed repair works.”
Looking ahead, MMHE believed that its engineering and construction segment will perform well through “successful execution of projects-in-hand and recently secured contracts.” It added that its marine repair and conversion segment is expected to remain satisfactory.
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