Malaysia: MHB CEO Satisfied with 1H Results

Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) announced its financial results for the period of six months ended 30 June 2012. The Group achieved revenue of RM1,631 million with profit before tax of RM147 million.

During the period under review, MHB completed and delivered two projects. The first was the timely completion and successful loadout of the Kinabalu Non-Associated Gas (NAG) Topside for the company’s client, Petronas Carigali Sdn Bhd. The second was the successful conversion of MISC Berhad’s Tenaga Satu, a Liquefied Natural Gas (LNG) vessel, into a Floating Storage Unit (FSU) facility, now known as FSU Lekas.

Managing Director & Chief Executive Officer, Mr. Dominique de Soras commented, “The first half year’s financial performance was satisfactory. Operationally, MHB has achieved two key corporate milestones. The Kinabalu NAG Topside is Malaysia’s first high-temperature, high-pressure (HTHP) gas production topside and it was successfully fabricated at our MMHE West Yard. Weighing 13,500 metric tonnes (MT), the topside was completed after we logged in 6.6 million manhours, all without Loss Time Injury (LTI)”.

“MHB has also completed the first conversion into a FSU by a Malaysia-based company. This is amongst the first few of such conversions in the world. After repair, life extension and conversion works by MHB, FSU Lekas now has an operational lifespan of 20 years without drydocking. It is currently moored at the country’s first LNG Regasification Terminal at Sungai Udang in Melaka”.

Mr. Dominique de Soras added that, “Both of these projects are noteworthy as they showcase MHB’s technical expertise and capabilities in successfully executing pioneering projects which support the nation’s oil and gas developments”.

In the Offshore segment, revenue and profit contributions were lower compared to the previous corresponding period at RM1,458 million and RM112 million respectively mainly due to the successful completion of the Turkmenistan Block 1 Phase 1 project. Other key projects such as Tapis Enhanced Oil Recovery (EOR), Telok Gas Development and OSX-3 FPSO External Turret are on-track.

During the period under review, the Kebabangan Northern Hub Development project was novated to MHB from Sime Darby Engineering on 2nd April, 2012. The Kebabangan topside is more than 30% completed after attaining 2.4 million manhours without LTI. MHB also successfully bid for the F14/F29 Topsides, Substructure and Process Module contract which comprises three structures awarded by Sarawak Shell Berhad. The combined contract value of the F14/F29 project is RM278 million.

The Marine business segment posted encouraging improvements in revenue to RM173 million while also attaining profit contribution of RM27 million. The repair, construction, life extension and conversion of the Tenaga Satu LNG vessel into FSU Lekas has contributed to the improved financial performance of this business unit. MHB also provided repair services to rigs and support vessels during the period under review.

MHB has embarked on a business integration and transformation programme to enhance the Group’s overall capability, competitiveness and efficiency in order to fully capitalise on the expanded yard capacity as well as to have greater flexibility to participate in more domestic and regional projects. The acquisition of Sime Darby Engineering Sdn Bhd’s yard at Pasir Gudang was completed during the period under review and this has further enhanced MHB’s position as the largest fabricator in Malaysia with a total yard size of 197 hectares.

At the bottomline, MHB attained a net profit of RM134 million with 8.3 sen basic earnings per share (EPS) attributable to equity holders for the period of six months ended 30 June 2012. And as at 30 June 2012, MHB’s total assets increased to RM6,542 million, of which RM1,268 million consisted of cash and bank balances.

1 Malaysian ringgit = 0.31903 U.S. dollars

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LNG World News Staff, August 03, 2012; Image: MHB