Malaysian offshore engineering specialist Malaysia Marine and Heavy Engineering Holdings (MHB) achieved revenues of MYR3.6 billion (US$810 million) with a profit before taxation (PBT) of MYR123.3 million (US$27.83 million) for the year ended December 31, 2024.
The company's heavy engineering segment recorded higher revenue of MYR3.187 billion (US$720 million) compared to MYR2.986 billion (US$670 million) in the corresponding year. The increase was primarily driven by higher revenue from ongoing projects, as these projects advanced into the construction stage.
The segment posted an operating profit of MYR110.1 million (US$24.85 million), mainly due to the recognition of change order claims during the year against an operating loss of MYR499.1 million (US$112.7 milion) in the corresponding year, which resulted from the additional costs provisions due to revised schedules and price escalation impacts on ongoing projects.
The marine segment also delivered stronger performance, registering higher revenue of MYR422 million (US$95.3 million) compared to MYR323.9 million (US$73.11 million) in the corresponding year, mainly due to higher conversion activities.
The segment reported an improved operating profit of MYR41 million (US$9.3 million) compared to MYR22.5 million (US$5.08 million) in the previous year mainly contributed by the higher revenue.
"For the heavy engineering segment, upstream capital spending in oil and gas is projected to grow steadily, while investment in renewable energy continues to rise," said Mohd Nazir Mohd Nor, MHB Managing Director and CEO. "This positions us to leverage opportunities across both conventional and emerging energy sectors, ensuring a well balanced portfolio.
"Additionally, the increased investment in upstream activities is expected to create avenues for the marine segment to capitalise on conversion projects. Despite ongoing challenges such as intense competition, we remain committed to securing key conversion and repair contracts and expanding our customer base to sustain business momentum and ensure stable income."