MHB Revenue Up, Malaysia

Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) announced its financial results for the three months ended 31 December 2013. The Group achieved a revenue of RM922 million (RM665,3 million) with profit before tax of RM57 million.

During the quarter, MHB successfully completed and delivered the OSX-3 FPSO External Turret and the Telok-B Jacket. On the TLP Malikai Deepwater Project, together with joint venture partner, Technip MHB Hull Engineering Sdn Bhd (TMH), MHB commenced on the design of the hull structure, while Technip MMHE (Malikai) Joint Venture (TMMJV) has started preparing for the fabrication process of the tension leg platform (TLP). In order to further enhance MHB’s competitiveness, the Group has also entered into long-term agreements with key subcontractors and vendors to create strategic alliances during the quarter under review.

The offshore business segment achieved higher revenue during the period under review with improved contribution from ongoing projects such as the Telok Gas Development and the recently-awarded Damar Platform Project.

MHB’s marine business segment posted profits improvements after successfully undertaking more LNG vessel repair projects, as the Group’s primary focus is on energy-related vessels.

MHB attained a net profit of RM51 million. Earnings per share (EPS) attributable to equity holders of MHB is 3.2 sen for the 1st Quarter. With ongoing investments in the yard optimisation programme, the Group’s Property, Plant and Equipment increased to RM1.5 billion. Total equity has increased to RM2.6 billion.

Managing Director & Chief Executive Officer, Mr. Dominique de Soras commented, “For 2013 and in line with our ongoing transformation programme, MHB will continue to focus on completing and delivering the many projects in the yards to our clients. As MHB embarks on the TLP Malikai Deepwater project – our third floating platform for deepwater fields in Malaysia – we are on the verge of completing the Gumusut-Kakap Floating Production System project, which will be the largest offshore operating facility in the Asia Pacific region”.

Mr de Soras added, “MHB’s deepwater development experience has embedded valuable technical knowledge and innovative skills for the continuous and sustained development of our people and the readiness to take on similar projects in the future. In MHB, our deepwater fabrication projects will be among the key yardsticks to measure the success of our transformation efforts to deliver on time and at cost. We will leverage on the strengths and expertise derived from the successful completion of previous deepwater projects to ensure the safe delivery and completion of the TLP Malikai Deepwater Project.

“MHB will continue the development of local deepwater capability to help secure Malaysia’s position as a regional deepwater hub and centre of excellence. By eventually delivering all the deepwater projects in Malaysia, MHB is well positioned to secure more extensive deepwater projects in the coming years”.

1 Malaysian Ringgit equals 0.33 US Dollar

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