KUALA LUMPUR (July 30): Malaysia Marine & Heavy Engineering Bhd (MHB) narrowed its net loss for the second quarter ended June 30, 2021 (2QFY21) to RM34.38 million from RM397.02 million last year, on lower impairments and operating losses in the quarter.

Quarterly losses per share shrank to 2.1 sen, from 24.8 sen last year, the group’s filing showed. The bigger operating losses last year was due to the yard shutdown during the Movement Control Order 1.0, it said.

Concurrently, revenue jumped 94.74% to RM302.45 million, from RM155.31 million a year ago, thanks to higher contributions from both marine and heavy engineering divisions.

For the six-month period ended June (6MFY21), it posted a lower net loss of RM138.73 million, from RM390.89 million in 6MFY20. This was again due to the weaker impairment incurred, although operating loss was actually wider due to additional cost provisions recognised for an ongoing project in the heavy engineering segment.

Revenue for the half-year period rose 28.75% to RM646.02 million, from RM501.74 million, on the back of higher heavy engineering division contribution, while marine segment contribution fell.

On prospects, MHB said the marine business prospects are expected to continue to be impacted by the nation's prevailing stringent border restrictions.

“The recent surge of other commodity prices such as steel due to pent-up demand and supply bottlenecks resulting from the pandemic may also unfavourably impact the viability and execution of new heavy engineering business prospects,” it said.

“As such, despite the industry showing signs of recovery, the group remains cautiously optimistic on future business opportunities,” it added.

At midday break, shares of MHB were unchanged at 43 sen today, valuing the group at RM680.18 million.