Malaysia Marine & Heavy Engineering (MMHE) has secured a new engineering, procurement, construction, installation, and commissioning (EPCIC) contract from Vestigo Petroleum, a subsidiary of Petronas. This contract is for the fabrication of a wellhead platform for the Kurma Manis field, located offshore Peninsular Malaysia.

Recent Contract Awards

This latest award follows a similar EPCIC contract secured earlier in the year from the same operator for wellhead platforms destined for the Irong Timur and Berantai East fields. These new contracts contribute to strengthening MMHE's order book.

Heavy Engineering Segment Performance

Despite the new contract awards, the heavy engineering segment's financial performance for the first nine months of the year showed a significant decline compared to the same period last year. Revenues were MYR 1.024 billion, which is less than half of the previous year's MYR 2.479 billion. Operating profit also fell to MYR 31.5 million from MYR 87.5 million. This decline is attributed to several projects nearing completion and newly secured projects still being in their early execution stages.

Market Outlook and Strategic Focus

The company acknowledges a subdued global economic outlook, influenced by trade policy uncertainties and geopolitical tensions. In response, the heavy engineering segment remains focused on safe and excellent project execution, timely delivery, and addressing operational challenges. The strategy includes actively pursuing opportunities to strengthen the order book in both conventional and new energy projects, both domestically and internationally.

Marine Segment Performance

In contrast to the heavy engineering segment, the marine segment showed improved performance. Revenues for the first nine months reached MYR 370.6 million, an increase of MYR 58.1 million from the previous year, largely due to higher vessel conversion and repair activities. Operating profit also increased to MYR 37.9 million, up MYR 4 million year-on-year. This segment is expected to continue its steady performance by focusing on operational efficiency and enhancing yard capabilities to maintain long-term competitiveness.

This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Amanda Battersby. All rights to the original text and images remain with their respective rights holders.