MHB Profit Up, Malaysia

Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) announced its financial results for the twelve months ended 31 December 2012. The Group achieved a revenue of RM3,330 million with profit before tax of RM218 million.

For the period under review, MHB has successfully completed and delivered the following structures to clients:

• Telok-A topside and jacket for the Telok Gas Development project;
• Tapis-Q topside and jacket for the Tapis Enhanced Oil Recovery (EOR) project, the first fullfield EOR project in Malaysia;
• Kinabalu Non-Associated Gas (NAG) Topside, the first High Pressure High Temperature (HPHT) platform in Malaysia; and
• Floating Storage Unit (FSU) Lekas, now deployed at the first Liquefied Natural Gas (LNG) regasification terminal in Malaysia. The successful conversion of a LNG vessel into a FSU facility is amongst the first few of such conversions in the world.

MHB’s offshore business segment has also successfully undertaken the superlift for the Gumusut-Kakap Floating Production System (FPS) project in the period under review. The integration of the topside and the hull using the superlift technique marked a major milestone towards completion of the project this year. The superlift technique involves having the 20,000 metric tonnes (MT) topside structure lifted and installed in one piece onto a large hull structure using strand jacks rather than cranes. The hull structure collectively weighs about 18,000 MT. The superlift technique was the first to be deployed in this region and the second in Asia Pacific.

MHB’s marine business segment posted results improvements in the period under review with contribution from the FSU Lekas project and also after successfully having undertaken more LNG vessel repair projects, as the Group’s primary focus is on energy-related vessels. The overall utilisation of facilities for the marine business segment such as the dry-docks, quays and land berths has also improved.

At the bottom line, MHB attained a net profit of RM242 million. Earnings per share (EPS) attributable to equity holders of MHB is 15.1 sen for the financial year ended 31 December 2012. With the ongoing investments in the yard optimisation programme and acquisition of MMHE East Yard, the Group’s Property, Plant and Equipment has increased by 32% to RM1.4 billion. Total equity has increased to RM2.5 billion and a final dividend per share of 10.0 sen per share has been proposed for shareholders approval in respect of the financial year ended 31 December 2012.

Managing Director & Chief Executive Officer, Mr. Dominique de Soras commented, “It has been a year of transformation for MHB. The Group acquired, successfully integrated the MMHE East Yard, and launched business improvement initiatives. For 2013, we will continue to focus on completing and delivering existing projects to our clients. It would be another milestone year as MHB embarks on the third floating platform for deepwater fields in Malaysia, the TLP Malikai Deepwater project after receiving a Letter of Award from our client. To date, MHB Group has been involved in the construction of all the deepwater floating solutions in Malaysia”.

1 Malaysian ringgit = 0.321906 U.S. dollars

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LNG World News Staff, February 21, 2013; Image: MHB