KUALA LUMPUR (Nov 27): Financially-strapped TH Heavy Engineering Bhd posted a net profit of RM2.67 million for the third quarter ended Sept 30, 2019 (3QFY19), some 97% lower than the RM100.76 million made in the corresponding quarter last year, due to the absence of debt waiver as part of its Scheme of Arrangement.

However, revenue jumped to RM12.02 million from RM79,000 last year, mainly because of revenue recognition from its Offshore Petrol Vessel (OPV) project.

For the cumulative nine months (9MFY19), the group posted a net profit of RM9.77 million against a net loss of RM3.47 million in the corresponding period last year. Revenue amounted to RM35.48 million from RM408,000 previously.

TH Heavy says it is cautiously optimistic of its non-oil and gas (O&G) prospects, subject to the successful implementation of the proposed scheme of arrangement, which is pending the issuance of Islamic irredeemable convertible preference shares (ICPS-i) to its creditors.

It said it has expanded into ship repair and ship building activities and also plans to move into refurbishment and maintenance works, as well as non O&G fabrication works, which are expected to provide more stable and recurring income.

TH Heavy closed 15.39% or a sen higher to 7.5 sen today, valuing the company at RM84.1 million. Some 1.51 million shares were traded.