ineering Bhd to experience a recovery in FY21 on the back of the steep losses recorded over the previous financial year. Barring any unforeseen changes (e.g. sudden suspension of yard works), we believe steep losses as in FY20 is unlikely to be repeated, it said.
The research house said the FY20 core loss of RM96.8mil was within its expectation at 104% of full-year loss forecasts although it exceeded consensus estimate by 31%.
It said the group is expected to benefit from a recovery in LNG dry-docking activities in FY21 in tandem with an increase in global demand despite challenges posed by border restrictions and stiff competition.
Chief executive Encik Pandai Othman said: “The global oil market has entered the infancy stage of recovery. OPEC+ played a major role in stabilising the market by relaxing production quotas in tandem with global oil demand throughout 2020. However, a swifter rebound looks to be at risk in view of renewed lockdowns in several major oil importing countries to curtail the spread of the new Covid-19 strain. As such, we remain cautious on the prospects of order book replenishment in the near term in view of uncertainties surrounding the timing of capital spending by oil majors.
He added that shipowners were tending to opt for dry docking in countries with more relaxed border restriction regulations, but once the industry recovers, the company s new fully operational dry dock would offer more flexible dry docking windows to shipowners.
s (MMHE) net loss in the financial year ended Dec 31, 2020, widened to RM396.81mil as compared to a net loss of RM34.22mil a year ago on the back of an impairment loss on property, plant and equipment and right-of-use assets. The impairment loss was recognised in view of the current oil and gas downturn and the expected prolonged recovery of the industry, it said in a statement.
Owing to the downturn, group revenue for the year had plunged 55% to RM1.57bil from RM1.01bil in previous year.
In the fourth quarter alone, the group incurred a net loss of RM8.56mil versus a net profit of RM9.28mil despite a 152% increase in revenue to RM695.5mil from RM275.6mil in the same quarter last year.
Despite a sharp increase in revenue, Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) slipped into a net loss of RM8.56 million in the fourth quarter ended Dec 31, 2020, from a net profit of RM9.28 million a year ago, dragged by higher operating losses in the heavy engineering segment.
KUALA LUMPUR (Feb 9): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Feb 10) include: Sarawak Consolidated Industries Bhd, Mitrajaya Holdings Bhd, Top Glove Corp Bhd, Supermax Corp Bhd, Eonmetall Group Bhd, LKL International Bhd, Gets Global Bhd, Dialog Group Bhd, Berjaya Food Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd, Teo Seng Capital Bhd, Oriental Interest Bhd, Genting Malaysia Bhd, AirAsia Group Bhd, Sapura Energy Bhd and Scomi Energy Services Bhd.
Sarawak Consolidated Industries Bhd’s units have bagged contracts worth RM821.32 million in Malaysia and Qatar for engineering, procurement, construction and commissioning (EPCC) projects. The first contract is for an EPCC project in Kuching worth RM421.97 million for the proposed mixed development in the Muara Tuang Land District and part of River Bank reserve, with an expected duration of 108 months. The second contract is for an EPCC contract in Qatar worth US$98 millio