QUARTERLY IR UPDATES 4 th Quarter 2019 Financial Results & - - PowerPoint PPT Presentation

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QUARTERLY IR UPDATES 4 th Quarter 2019 Financial Results & - - PowerPoint PPT Presentation

QUARTERLY IR UPDATES 4 th Quarter 2019 Financial Results & Updates 12 th February 2020 1 Disclaimer This Presentation is not intended to form the basis of any investment decision with respect to Malaysia Marine and Heavy Engineering Holdings


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QUARTERLY IR UPDATES

4th Quarter 2019 Financial Results & Updates

12th February 2020

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Disclaimer

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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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Business Highlights

Projects Financials Shareholding Information Key Focus Areas

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Key Highlights in FY2019

FINANCIALS

  • Revenue of RM1.0 bil
  • Pre-tax loss of RM39.8 mil

MARINE BUSINESS UNIT (MBU) MILESTONES:

  • Completed repair & maintenance of 77 vessels
  • Secured 86 jobs

HEAVY ENGINEERING UNIT (HEU) MILESTONES:

  • Awarded with Construction and Commissioning of Golden Star External Turret
  • Sail away of Gumusut-Kakap Phase II Extension Subsea Manifold
  • Awarded an EPCIC of central processing platform (CPP) and wellhead platform (WHP) for the

Kasawari Gas Development project

  • Completion of RAPID Package 3 Area 2
  • Completion of RAPID Package 14
  • Awarded an EPCC of Bergading Mercury Removal Unit (MRU) module for Bergading Central

Processing Platform (CPP)-MRU Integration Project

  • Awarded an EPCIC of supply and installation of new BEDP-A and BEDP-B WHP For Bekok Oil

Project

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Business Highlights

Projects

Financials Shareholding Information Key Focus Areas

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Progress is at 73.31% as of December 2019

Bokor Phase 3 Re-Development CPP

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Progress is at 87.25% as of December 2019

Pluto Water Handling Module

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Progress is at 62.94% as of December 2019

Golden Star External Turret

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Progress is at 4.61% as of December 2019

Kasawari

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Progress is at 13.87% as of December 2019

MRU-Integration

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Notable Marine Repair Projects Delivered in Q4 2019 – Gas (1/2)

Vessel owner: KSS Lines Ltd Deadweight: 54,684 tonnage Job scope: Drydocking & Repairs and Scrubber Retrofitting Delivery date: 16th November 2019

LPG Gas Summit LNG Shen Hai

Vessel owner: China LNG Shipping (International) Co. Ltd. Deadweight: 86,625 tonnage Job scope: Drydocking and Repairs Delivery date: 28th October 2019

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Vessel owner: MISC Berhad Deadweight: 71,814 tonnage Job scope: Manifold Modification Delivery date: 12th December 2019

LNG FSU Tenaga Satu

Notable Marine Repair Projects Delivered in Q4 2019 – Gas (2/2)

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Vessel owner: MTC Engineering Sdn.Bhd Deadweight: 27,031 tonnage Job scope: FPSO Conversion Delivery date: 27th November 2019

FPSO Ledang

Vessel owner: SK Shipping Co. Ltd. Deadweight: 75,154 tonnage Job scope: Drydocking & Repairs and Cargo Tank Repair Delivery date: 28th October 2019

SK Splendor

Notable Marine Repair Projects Delivered in Q4 2019 – Non-Gas

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Docking Essential Defect (DED) for KD GEMPITA

Notable MMHE EPIC Marine & Services Sdn Bhd (MEMS) Projects

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Progress is at 86.11% as of December 2019

Dry Dock 3 (DD3)

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Business Highlights Projects

Financials

Shareholding Information Key Focus Areas

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  • Revenue
  • Increased revenue from Marine segment
  • Operating Profit/(Loss)
  • Reported operating profit in tandem with the higher

revenue and improved performance in the Marine segment

  • Pre-Tax Profit
  • Reported pre-tax profit mainly due to improved

performance in the Marine segment 17

Financial Updates

Income Statement, Sequential Quarter

Income Statement (RM 'm) 4Q 2019 3Q 2019 Revenue Heavy Engineering Marine 275.6 148.5 127.1 254.3 152.8 101.5 Operating Profit/(Loss) Heavy Engineering Marine Others 1.6 (10.3) 5.2 6.8 (4.9) (6.8) 2.5 (0.5) Finance Cost

  • 0.4

Share of Results of JV 1.3

  • Pretax Profit/(Loss)

3.0 (4.5) Taxation 6.4 (0.3) Net Loss 9.4 (4.7) EPS/(LPS) 0.6 sen (0.3) sen

Note : Due to rounding, numbers may not tally with the total

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Income Statement (RM 'm) 12M 2019 12M 2018 Revenue Heavy Engineering Marine 1,009.5 578.6 430.9 974.4 651.5 322.9 Operating Profit/(Loss) Heavy Engineering Marine Others (41.1) (60.8) 8.5 11.5 (126.2) (39.0) (81.7) (5.4) Finance Cost

  • (0.9)

Share of Results of JV 1.3 3.0 Pretax Loss (39.8) (124.1) Taxation 5.5 (0.1) Net Loss (34.2) (124.2) LPS (2.1) sen (7.7) sen

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  • Revenue
  • HEU – Lower revenue from post sail-away projects as

most have reached their tail end in the prior year.

  • MBU – Increase in revenue mainly from higher dry

docking services on LNG carriers and conversion work

  • Operating Profit/(Loss)
  • HEU – Higher operating loss as a result of lower revenue

and higher unabsorbed overheads

  • MBU – Recorded operating profit in tandem with the

revenue growth and lower unabsorbed overheads

  • Share of Results of JVs
  • Profit of RM1.3 million mainly contributed by the

settlement of projects in the joint ventures

  • Pre-Tax Loss
  • Lower pre-tax loss due to better performance in the

Marine segment

Note:

  • 1. Segmental Revenue and Operating Profit is post inter-segment eliminations
  • 2. Due to rounding, numbers may not tally with the total

Financial Updates

Income Statement, Year-on-Year

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Balance Sheet (RM 'm) Dec 2019 Dec 2018 Non-Current Assets 2,034.9 1,905.5 Inventories 4.4 5.6 Receivables 502.3 648.0 Cash 671.9 601.5 Others 2.6 20.6 Total Assets 3,216.1 3,181.2 Shareholders' Funds 2,372.3 2,407.1 Non-Controlling Interests 9.2 (0.3) Long Term Loan 178.9 48.4 Long Term Lease Liabilities 8.6

  • Payables

643.5 726.0 Short Term Lease Liabilities Derivatives 2.0 1.6

  • Total Equity & Liabilities

3,216.1 3,181.2 NTA per share RM1.49 RM1.50

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  • Total assets of RM3.2bil
  • Higher Non-Current Assets – Increase in PPE
  • Higher Non-Current Liabilities – Mainly due to

disbursement of loan for the construction of Dry Dock No. 3

  • Higher Cash – Increase in net cash generated from
  • perating activities
  • NTA per share of RM1.49

Note : Due to rounding, numbers may not tally with the total Financial Updates

Balance Sheet

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Backlog & Order Intake

652 182 1,145 144 2,644 500 1,000 1,500 2,000 2,500 Dec15 Dec16 Dec17 Dec18 Dec19 1,023 629 1,273 785 2,958 500 1,000 1,500 2,000 2,500 3,000 3,500 Dec15 Dec16 Dec17 Dec18 Dec19

RM (‘000) RM (‘000)

Note: New Order Intake excludes Marine Business segment

Backlog New Order Intake

Marine Business Unit 3.1% Heavy Engineering Unit 96.9%

RM2,957.9 mil

MHB Backlog as of 31 December 2019

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Business Highlights Projects Financials

Shareholding Information

Key Focus Areas

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66.50% 2.35% 6.60% 8.50% 10.72% 5.33% MISC Foreign Investors Urusharta Jamaah Technip Other Malaysian Shareholders Others

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Lembaga Tabung Angkatan Tentera 2.23% 2.23% Amanah Trustees 1.50% 1.50% EPF 1.60% 1.60% Note: Others include the following: Sep-19 Dec-19 66.50% 3.26% 6.60% 8.50% 9.81% 5.33% Corporate Updates

Shareholding Information & Share Price

As of 30 Sep 2019 As of 31 Dec 2019 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 1/Oct/19 1/Nov/19 1/Dec/19

Share Price (RM)

14/10/2019

0.92

31/Dec/19

0.82

07/10/2019

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Business Highlights Projects Financials Shareholding Information

Key Focus Areas 5

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Key Focus Areas

  • HEU tenders worth ~ RM12.89 billion have been submitted as of December 2019
  • Strategy & Initiatives
  • Continue pursuing existing business of Marine & Heavy Engineering and expanding marine

capacity through additional dry dock

  • Continue exploring new business opportunities namely modular fabrication and offshore

wind farm

  • Reinforce internal process control and strengthening project planning
  • Implement productivity improvement initiative to achieve operational efficiency
  • Upskill manpower through capability development programs
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Thank You

MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD (178821-X)

INVESTOR RELATIONS Level 31, Menara Dayabumi, Jalan Sultan Hishamuddin, 50050 Kuala Lumpur, Malaysia T : +603 2275 3792 F : +603 2273 8916 W : www.mhb.com.my

MALAYSIA MARINE AND HEAVY ENGINEERING SDN BHD (14558-P)

(a wholly owned subsidiary of MHB) MMHE West, PLO 3, Jalan Pekeliling, P.O.Box 77, 81700 Pasir Gudang, Johor, Malaysia T : +607 268 2111 F : +607 278 4162