Thursday, September 29, 2011

MMHE ... Sep11

The heavy engineering arm of national state oil firm Petronas is in talks for a proposed fabrication yard in Brunei were at a preliminary stage.

The yard announced by Prime Minister Datuk Seri Najib Razak, is one of two projects to be undertaken by Petronas in the Southeast Asian sultanate with the other being a $1.6 billion petrochemical complex.

Malaysia Marine has embarked on an expansion plan, which includes the proposed acquisition of Sime Darby’s fabrication yard in Pasir Gudang for 394 million.

It is bidding for projects valued at as much as RM6 billion in the country and overseas. The company’s order-book currently stands at RM3.1 billion. The group had submitted bids for engineering, procurement, construction, installation and commissioning and, construction projects in the oil and gas industry, mostly in Malaysia.

MHB’s projection for capital expenditure depended on its yard optimisation programme and some RM2.7 billion had been allocated for the purpose. A total of RM700 million has been utilised and the remaining RM2 billion is for over a period until 2014.

Upon completion of MHB’s acquisition of Sime Darby Engineering’s Pasir Gudang yard in Johor, the company’s yard space would increase from 148.8ha to 195.2ha while capacity would rise to about 130 tonnes per year from about 70 tonnes currently.

MHB offers a wide spectrum of engineering and construction, marine conversion and marine repair services from its yard in Pasir Gudang and operates a yard in Kiyanly, Turkmenistan, on behalf of Petronas Carigali (Turkmenistan) Sdn Bhd.

With the acquisition, MHB will be able to pitch for more projects and can increase its margin and profitability.

MHB’s net profit was lower at RM79 million for 1QFY11 ended June, compared with RM110.2 million a year ago. Its revenue came lower at RM957.8 million against RM1.17 billion. Earnings per share dropped to 4.9 sen from 8.2 sen.

MHB has retreated from its peak of RM8.67 recorded on July 6 amid the weak market sentiment. The stock has fallen 29% to RM6.15 from its historical high.

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