QUARTERLY IR UPDATES - MHBmhb.com.my/wp-content/uploads/2018/02/Final_MHB...QUARTERLY IR UPDATES 4th...

Malaysia Marine and Heavy Engineering Holdings Berhad

QUARTERLY IR UPDATES

4th Quarter 2017 Financial Results & Updates

7th February 2018


Disclaimer

This Presentation is not intended to form the basis of any investment decision with respect

to Malaysia Marine and Heavy Engineering Holdings Berhad (MHB). Neither this

presentation nor anything contained herein shall form the basis of, or be relied upon in

connection with, any contract or commitment whatsoever. No representation or warranty,

express or implied, is or will be made by MHB in relation to, and no responsibility or liability

is or will be accepted by MHB as to the accuracy and completeness of, the Information

made available, and any liability therefore is expressly disclaimed.

This Presentation may contain “forward-looking statements”. Forward-looking statements

by their nature involve known and unknown risks, uncertainties and other factors that are in

many cases beyond MHB’s control. Although MHB believes that the expectations of its

management as reflected by such forward-looking statements are reasonable based on

information currently available to it, no assurances can be given that such expectations will

prove to have been correct. Accordingly, you are cautioned not to place undue reliance on

such forward-looking statements. In any event, these statements speak only as of their

dates, and MHB undertakes no obligation to update or revise any of them, whether as a

result of new information, future events or otherwise.

This Presentation and its contents are strictly confidential and must not be copied,

reproduced, distributed, summarized, disclosed referred or passed on to others at any time

without the prior written consent of MHB. Except for the yard facilities in the photographs,

none of the vessels/structures belong to MHB.

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Contents 3

• Overview

• Projects

• Financials

• Highlights

• Moving Forward


Overview


Key Highlights

FINANCIALS

• Revenue of RM956.4 mil

• Pretax Profit of RM11.0 mil

PROJECTS

Heavy Engineering Unit (HEU) Milestones:

Offshore

• Sail-away of F12 Kumang WHP topside and jacket

• Sail-away of Besar-A topside

• Sail-away of Baronia CPP jacket, bridge & piles

• Sail-away of PETRONAS PFLNG2 Turret

• Completion of modification and rejuvenation of Facilities

Improvement Project (FIP)

• Completion of FSO Benchamas 2 External Turret

Onshore

• Completion of plate rolling for Package 22

• Completion of piping and pipe support pre-fabrication for

Package 3 Area 3

Marine Business Unit (MBU) Milestones:

• Completed repair & maintenance of 75 vessels

• Secured 74 vessels

5


Projects


Sail-away of Topside on 3rd March 2017

Besar-A WHP Topside, Jacket & HUC

7


Sail-away of Topside on 3rd March 2017

F12 Kumang WHP Topside, Jacket & HUC

8


Sail-away of Jacket on 7th March 2017

Baronia CPP Jacket, Bridge & Piles

9


Sailed away on 2nd December 2017

Petronas PFLNG 2 Turret system

10


Completed integration of external turret on 22nd November 2017

FSO Benchamas 2 External Turret

11


Completed modification and rejuvenation work on 30th September 2017

Facilities Improvement Project

12


Completion of plate rolling on 30th June 2017

RAPID Package 22

13


Completion of piping and pipe support pre-fabrication on 31-Mar-2017

RAPID Package 3 Area 3

14


Progress at 6.04%

Bokor CPP EPCIC

15


Progress at 28.33%

Sepat – A WHP EPCIC

16


Progress at 99.43%

RAPID Projects - Package 5 Centralised Piping Fabrication (CPF)

17


Progress at 55.26%

RAPID Projects – Package 5 ROG

18


Progress at 79.76%

RAPID Projects – Package 3 Area 2

19


Progress at 42.13%

RAPID Projects – Package 14

20


Refurbishment and Conversion (99.80% Progress)

FSO “Nautica Bergading”

21


RLE and Conversion (93.40% Progress)

FSO “Benchamas-2”

22


Fabrication, procurement, construction, testing and pre-commissioning (93.80% Progress)

Dangote (CALM) Buoy

23


Financials


Financial Updates

Income Statement, Sequential Quarter

• Revenue

• HEU – Higher revenue contributed by new

projects.

• MBU – Lower revenue due to lower value

and number of vessels repaired in the

current quarter.

• Operating

• HEU – Returned to profit against loss in

the previous quarter, mainly from

finalisation of completed projects in the

current quarter.

• MBU – Lower operating profit in tandem

with the lower revenue reported.

• Share of results of JVs

• Returned to profit against loss in the

previous quarter, mainly due to reversal of

cost provisions in the current quarter.

• Pre-tax profit

• Overall, pre-tax profit has increased with

the higher revenue and operating profit.

Income Statement (RM 'm) 4Q 2017 3Q 2017

RevenueHeavy EngineeringMarine

247.954162.277

85.677

215.350117.627

97.723

Operating ProfitHeavy EngineeringMarineOthers

23.53211.57012.059-0.097

17.081-1.79716.980

1.898

Share of Profitof JV 2.765 -1.292

Pretax Profit 26.297 15.789

Taxation 20.854 0.431

Net Profit 47.151 16.220

EPS 3.0 sen 1.0 sen

Note:

Due to rounding, numbers may not tally with the total

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Financial Updates

Income Statement, Year-on-Year

• Revenue• HEU – Completion of several offshore projects

whilst revenue from new projects will be mainly recognised in 2018.

• MBU – Lower contract value and number of vessels repaired.

• Operating• HEU - Lower operating loss from the prior year

mainly from recognition of change orders and finalisation of completed projects in the current year.

• MBU – Lower operating profit from the prior year in tandem with the lower revenue reported.

• Share of results of JVs• Lower loss in the current year, mainly due to

reversal of cost provisions

• Pre-tax profit• Overall, profit has returned to the black in the

current year due to no additional impairment compared to impairment of RM141 mil recorded in the prior year.

Note:


Income Statement (RM 'm) 12M 2017 12M 2016

RevenueHeavy EngineeringMarine

956.414591.324365.090

1,191.298746.666444.632

Operating Profit/ (Loss)Heavy EngineeringMarineOthers

14.257-36.69752.766-1.812

13.055-107.713

88.51832.250

Provision for asset impairments - -140.529

Share of Profit/ (Loss)of JV -3.239 -7.558

Pretax Profit/ (Loss) 11.018 -135.032

Taxation 21.428 0.469

Net Profit/ (Loss) 32.446 -134.563

EPS/ (LPS) 2.1 sen -8.4 sen

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Balance Sheet (RM 'm) Dec 2017 Dec 2016

Non-Current Assets 1,839.433 1,857.528

Inventories 2.399 10.747

Receivables 848.379 1,052.111

Cash 674.968 671.128

Others 20.864 11.007

Total Assets 3,386.043 3,602.521

Shareholders' Funds 2,577.624 2,538.617

Payables 808.419 1,022.412

Borrowing & Others - 41.492

Total Equity & Liabilities 3,386.043 3,602.521

NTA per share RM1.61 RM1.58

Financial Updates

Balance Sheet

• Total assets of RM3.386bn

• Receivables & Payables – completion of offshore projects

• NTA per share of RM1.61

*

* Audited

Note:


27


Marine Business UnitF12

CPP Bokor

Benchamas

Sepat Phase 2A

Besar A

Rapid (4 Packages)

Dangote CALM BuoyOthers

1,701

2,559

356652

182

1,145

Dec12 Dec13 Dec14 Dec15 Dec16 Dec17

Financial Updates

Backlog & Order Intake

Order Intake RM million

1,772

2,556

1,5751,023

629

1,273

Dec12 Dec13 Dec14 Dec15 Dec16 Dec17

Backlog RM million

Backlog

1 New Order Intake excludes marine vessel business

Backlog

December 2017

RM1,273.4m1

New Order Intake

Call Out Contract

420105

550

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Corporate Updates

Shareholding Information

Foreign Investors 2.88%

Other Malaysian Shareholders

11.83%

EPF 1.53%

PNB & PNB Unit Trust

Funds 2.07%

Lembaga Tabung Haji

6.69%

Technip SA8.50%

As at

29 Dec 2017

Share Price RM

0.50

1.00

1.50

2.00

2016 2017

1.00 0.92

0.8229/12/2017

As at

31 Dec 2016

29


Highlights


MMHE EPIC Marine & Services Sdn Bhd (MEMS)

• Incorporated on 16 August 2016 as a JV between Malaysia Marine and Heavy Engineering Sdn

Bhd (MMHE) and Eastern Pacific Industrial Corporation Berhad (EPIC)

• 1st floating dock in East Peninsular Malaysia. A 5,000 tons floating dock with maximum lifting

capacity of 6,500 MT

• Able to carry out repair and maintenance work for all onshore support vessels (OSV) and other

smaller vessels around the East Coast of Peninsular Malaysia and Gulf of Thailand

• Started operation in April 2017, less than a year after construction was completed

• Secured first repair and maintenance work for Research Survey Vessel (RSV) on 27 April 2017

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• FID approved by the Board of Directors on 26 April 2017

• DD3 offers flexibility to cater various types of vessel, especially LNG Carrier

• Dock size of 350m (L) x 80m (W) x 14m (D)

• Overall progress is 15.4% as at 30 Dec 2017

• DD3 is expected to commence operation in Q3 2020

Dry Dock 3 (DD3)

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• Strategy & Initiatives

• ~ RM4.0 billion ongoing HEU tenders

• Developing Onshore Construction & Fabrication capabilities through process

module and non O&G industry

• Seizing available Floater Conversion opportunities in international market

• Developing Oil & Gas Services for onshore and offshore

• Continue pursuing existing business of Marine & Heavy Engineering

• Marine Capacity Expansion through additional dry dock

Moving Forward

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