Shares in Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) plummeted today (Wednesday) following a disappointing second quarter earnings report.
MHB reported a net loss of RM388.7 million for the second quarter ending June 30, 2023, compared to a net profit of RM21.97 million a year earlier.
The decrease follows the increase in the company's allocation costs for ongoing projects.
At the time of writing, MHB shares plunged 17.39% or 10 sen to 47.5 sen, bringing a total market capitalization of RM768 million in the Bursa's afternoon trading session.
However the group saw a two-fold jump in its revenue to RM1.06 billion from RM400.63 million a year ago, driven by higher revenue from the heavy engineering segment.
The segment recorded revenue of RM990.9 million from RM309.9 million for the same quarter previously, contributed by higher revenue from ongoing projects.
Overall performance for the first six months as of June 30, MHB recorded a net loss of RM385.16 million compared to a net profit of RM25.69 million a year earlier.
Meanwhile, revenue was reported to have increased 89.7% to RM1.55 billion from RM818.41 million previously.
The group, which is controlled by Petroliam Nasional Bhd (Petronas) sees the heavy engineering segment will continue to face challenges in implementing ongoing projects to meet originally estimated margins.
This is due to the effects of rising raw material prices and global supply chain disruptions.
