KUALA LUMPUR (Aug 2): Malaysia Marine and Heavy Engineering Holdings Bhd's (MHB) net loss for the second quarter ended June 30, 2019 narrowed to RM9.48 million from RM49.48 million a year earlier, mainly due to improved performance in both its heavy engineering and marine segments.

In a filing to Bursa Malaysia today, MHB said revenue for the quarter increased 24% to RM276.45 million from RM223.04 million previously.

Loss per share was 0.59 sen versus 3.09 sen previously.

For the six months ended June 30, MHB's net loss narrowed to RM38.84 million from RM74.75 million a year ago, on the back of revenue of RM479.56 million versus RM411.31 million a year earlier.

On its prospects, MHB said the overall outlook for the second half of the year remains uncertain amidst prolonged unresolved trade tensions, slowing economic growth as well as escalating geopolitical tensions that continue to impact business confidence and investments.

It said despite the uncertainties, offshore oil and gas production activities continue to improve albeit moderately.

MHB said it continues to remain vigilant on the outlook of the industry in the near term and the timing of capital spending by major oil and gas players.

"The recent contract award from Petronas Carigali Sdn Bhd for the engineering, procurement, construction, installation and commissioning (EPCIC) works for the Kasawari Gas Development project demonstrates the group's commitment to ensure the sustainability of its order book.

"As the industry outlook continues to be challenging in the current financial year, the group remains cautious and will focus on replenishing orderbook in various geographical areas as well as diversifying into other businesses. Cost management, quality and timely deliverable of projects remain as a priority to ensure an improved bottom line," it said.

In a separate statement, MHB managing director and chief executive officer Wan Mashitah Wan Abdullah Sani said the outlook for marine business continues to improve, supported by higher work volume for upgrading and retrofitting work due to the imminent implementation of IMO 2020 sulphur cap regulation.

"LNG tanker market is healthy, underpinned by export project start-ups in the United States and Australia which is driving demand for global LNG trade," she said.

At the midday break today, MHB shares fell 6% or 5.5 sen to 85.5 sen for a market capitalisation of RM1.37 billion.