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 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. Despite these new contract wins, the company's financial performance in its heavy engineering segment has declined.

Heavy Engineering Segment Performance

For the nine-month period ending 30 September, the heavy engineering segment's revenues were 1.024 billion ringgit ($246 million), which is less than half of the 2.479 billion ringgit recorded in the same period the previous year. Operating profit also saw a significant decrease to 31.5 million ringgit, down from 87.5 million ringgit a year prior. This decline is attributed to several projects nearing completion and newly secured projects still being in the early stages of execution.

Management Outlook for Heavy Engineering

Management acknowledged a subdued global economic outlook, citing trade policy uncertainties and persistent geopolitical tensions. However, the segment remains focused on safe and excellent project execution, timely delivery, and addressing operational challenges. The company is actively pursuing opportunities to strengthen its 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 recorded improved performance. Revenues for the first nine months of the year were 370.6 million ringgit, an increase of 58.1 million from the corresponding period. This improvement was largely supported by higher vessel conversion and repair activities. Operating profit for the marine segment increased to 37.9 million ringgit, up 4 million year-on-year, mainly due to the higher revenues.

Management Outlook for Marine Segment

Despite operating in a highly competitive market, the marine segment is expected to continue delivering steady performance. The focus remains on driving operational efficiency and enhancing yard capabilities to sustain long-term competitiveness and support future growth.