Malaysia Marine Heavy Engineering Quarterly Profit Drops

Gumusut Kakap

Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) has announced results for 2Q 2013 and six months ended 30 June 2013. The group’s quarterly profit was RM 47,9 million (USD 14.6 million), a drop compared to the 2Q 2013 when the company earned RM 55,5 million (USD 17 million)

For the six months ended June 30, 2013 the Group achieved a revenue of RM1.7 billion (USD 519 mln) with profit before tax of RM109 million (USD 33 million).

During the quarter, MHB successfully completed the Gumusut-Kakap Floating Production System (“FPS”). The semi-submersible floating production system was the largest such facility in the world to have been fully built and integrated on land. It left the MMHE West Yard and sailed on a semi-submersible heavylift vessel to Desaru waters where a sea trial and an inclination test were successfully conducted. The Gumusut-Kakap FPS was handed over to the client on 3rd June 2013.

MHB also delivered the Telok-B Topside in the 2nd quarter of 2013. This marked a significant milestone in the Telok Gas Development project as MHB had already successfully delivered three (3) other structures, namely Telok-A Topside, Telok-A Jacket and Telok-B Jacket to our client over the past twelve months. The offshore business segment achieved higher revenue during the period under review with contribution from recently secured contracts such as the F14/F29 topsides, substructure and process module project, the Damar platform project and the Tension Leg Platform (“TLP”) Malikai Deepwater project. Meanwhile, MHB’s marine business segment posted profit improvements after successfully undertaking additional vessel repair projects. The Group has primarily focused on energy-related vessels and had secured more LNG vessel repair projects during the period under review. MHB attained a net profit of RM98 million.

Earnings per share (“EPS”) attributable to equity holders of MHB is 6.1 sen for the 1st half of 2013. With ongoing investments in the yard optimisation programme, the Group’s Property, Plant and Equipment have increased to almost RM1.5 billion. Total equity of MHB was RM2.6 billion as at 30th June.

Managing Director & Chief Executive Officer, Dominique de Soras commented, “The  completion of the Gumusut-Kakap FPS showcased MHB’s capabilities in the construction of floating production facilities. MHB is developing its deepwater expertise further with the TLP Malikai Deepwater project, our 3rd floating platform for deepwater fields in Malaysia. We are also leveraging on our experience and expertise for other projects to enhance the overall competitiveness and execution capabilities of MHB”.

 

 

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 August 14, 2013