Malaysia Marine and Heavy Engineering Revenue Rises 12 Percent

On 6th May 2011, the Board of Directors of Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) has approved the consolidated results for the financial year ended 31st March 2011.

MHB achieved a revenue of RM4,435.4 million and the Group’s profit before tax improved by 12.4% to RM424.0 million. The better performance was attributed to higher profits at the Engineering and Construction segment and share in profit contribution by its jointly controlled entities. At the bottom line, helped by Investment Tax Allowance, net profit improved significantly by 58.6% to RM450.5 million.

As a public listed company within its first year of listing, the Board of Directors is pleased to recommend an inaugural dividend of 5.0 sen per share for the financial year ended 31st March 2011. The proposed final dividend, if approved by shareholders, will be paid on 19th October 2011.

Mr Dominique de Soras, Managing Director/Chief Executive Officer of MHB, remarked, “The Group has achieved a commendable financial performance in its first annual results as a public listed company. It is our honour to be able to deliver such performance to all our stakeholders after receiving such an overwhelming support from them. We plan to further enhance MHB’s competitive edge as PETRONAS expands further into more demanding projects in the coming years. So, we need to develop even more high performance human resources, competencies and capabilities. We must improve MHB’s overall project execution and processes further so that we can deliver better quality fabricated structures and services level to our clients.”

MHB has a strong balance sheet with a cash balance of RM1,448.1 million following its public listing in October 2010. The Group will gradually utilise the listing proceeds in the coming financial period for its Yard Optimisation Programme to increase the Pasir Gudang’s yard efficiency. MHB plans to expand the number and type of projects that are being undertaken at its strategically located Pasir Gudang yard in Johor.

MHB is the only yard in Malaysia capable of fabricating heavy-tonnage structures and carry out complete repair and conversion of FPSOs and FSOs. During the financial year, MHB has completed and successfully delivered the Tangga Barat Topside and BP Angola Turret from its Pasir Gudand yard. Its Engineering & Construction division achieved higher profit from operations of RM316.1 million.

MHB also operates and manages the Kiyanly yard in Turkmenistan for PETRONAS Carigali (Turkmenistan) Sdn Bhd. The yard there has also completed, successfully delivered and installed the Gravity Base Structure and Magtymguly Collection Riser-A in the Caspian Sea.

The Marine Repair & Conversion business segment at Pasir Gudang has also increased the number of vessels it repaired and more than half of the ships serviced carry high-value liquefied natural gas (LNG), liquefied petroleum gas (LPG) and petroleum products.

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Source: Malaysia Marine and Heavy Engineering , May 6, 2011;