QUARTERLY IR UPDATES 1st Quarter 2020 Financial Results & - - PowerPoint PPT Presentation

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QUARTERLY IR UPDATES 1st Quarter 2020 Financial Results & - - PowerPoint PPT Presentation

QUARTERLY IR UPDATES 1st Quarter 2020 Financial Results & Updates 29th April 2020 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

1st Quarter 2020 Financial Results & Updates

29th April 2020

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Quarterly IR Updates 2

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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Quarterly IR Updates 3

Business Highlights

Projects Financials Shareholding Information Key Focus Areas

1

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Quarterly IR Updates 4

Key Highlights in Q1 2020

FINANCIALS

  • Revenue of RM346.4 mil
  • Pre-tax profit of RM5.6 mil

MARINE BUSINESS MILESTONES:

  • Completed repair & maintenance of 15 vessels
  • Secured 24 jobs

HEAVY ENGINEERING BUSINESS MILESTONES:

  • Completed construction of FSO Golden Star External Turret
  • Awarded contract for onshore fabrication and offshore modification services for CPOC facilities
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Quarterly IR Updates 5

Business Highlights

Projects

Financials Shareholding Information Key Focus Areas

2

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Slide Title 6

Completed in March 2020

Golden Star External Turret

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Slide Title 7

Progress is at 76.93% as of March 2020

Bokor Phase 3 Re-Development CPP

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Slide Title 8

Progress is at 98.65% as of March 2020

Pluto Water Handling Module

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Slide Title 9

Progress is at 10.49% as of March 2020

EPCIC Kasawari Gas Development Project

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Slide Title 10

Progress is at 45.95% as of March 2020

MRU-Integration

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Slide Title 11

Progress is at 25.84% as of March 2020

Bekok Oil Project

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Quarterly IR Updates 12

Notable Marine Repair Projects Delivered in Q1 2020 – Gas (1/2)

Vessel owner: Frontline Management AS Deadweight: 53,854 tonnage Job scope: 1st Special Survey Drydocking & Repairs and Scrubber Installation Delivery date: 22nd February 2020

VLGC Mistral

Vessel owner: MISC Berhad Deadweight: 89,902 tonnage Job scope: Drydocking & Repairs and Ballast Water Treatment System Installation Delivery date: 16th January 2020

LNG Seri Begawan

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Quarterly IR Updates 13

Notable Marine Repair Projects Delivered in Q1 2020 – Gas (2/2)

Vessel owner: Frontline Management AS Deadweight: 53,752 tonnage Job scope: 1st Special Survey Drydocking & Repairs and Scrubber Installation Delivery date: 3rd March 2020

VLGC Monsoon

Vessel owner: Frontline Management AS Deadweight: 53,659 tonnage Job scope: 1st Special Survey Drydocking & Repairs and Scrubber Installation Delivery date: 20th March 2020

VLGC Levant

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Slide Title 14

Docking Essential Defect (DED) for KD GEMPITA

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

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Slide Title 15

Progress is at 91.88% as of March 2020

Dry Dock 3 (DD3)

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Quarterly IR Updates 16

Business Highlights Projects

Financials

Shareholding Information Key Focus Areas

3

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Quarterly IR Updates 17

Financial Updates

Income Statement, Sequential Quarter

  • Revenue
  • Increase in revenue mainly due to higher revenue from

the Heavy Engineering segment

  • Operating Profit
  • Reported operating profit in tandem with the higher

revenue and improved performance in the Heavy Engineering segment

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

revenue and improved performance in the Heavy Engineering segment

Income Statement (RM 'm) 1Q 2020 4Q 2019 Revenue Heavy Engineering Marine 346.4 226.8 119.7 275.6 148.5 127.1 Operating Profit/(Loss) Heavy Engineering Marine Others 5.6 1.2 (1.5) 5.8 1.6 (10.3) 5.2 6.8 Finance Cost

  • Share of Results of JV
  • 1.3

Pretax Profit/(Loss) 5.6 3.0 Taxation (0.1) 6.4 Net Profit/(Loss) 5.5 9.4 EPS/(LPS) 0.4 sen 0.6 sen

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

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Quarterly IR Updates 18

Financial Updates

Income Statement, Year-on-Year

  • Revenue
  • Heavy Engineering – Increase in revenue mainly

contributed by higher revenue from on-going projects

  • Marine – Improved revenue mainly contributed by the

increase in revenue from LPG vessels and conversion work

  • Operating Profit
  • Heavy Engineering – Recorded operating profit mainly

due to reversal of cost provision in the current quarter

  • Marine – Lower operating loss in tandem with higher

revenue

  • Share of Results of JVs
  • No share of profit in joint ventures in the current quarter

as all have become dormant

  • Pre-Tax Profit
  • Achieved pre-tax profit mainly due to higher revenue and

improved performance in both segments

Income Statement (RM 'm) 1Q 2020 1Q 2019 Revenue Heavy Engineering Marine 346.4 226.8 119.7 203.1 125.4 77.7 Operating Profit/(Loss) Heavy Engineering Marine Others 5.6 1.2 (1.5) 5.8 (29.3) (23.9) (7.5) 2.1 Finance Cost

  • (0.2)

Share of Results of JV

  • Pretax Profit/(Loss)

5.6 (29.5) Taxation (0.1) (0.3) Net Profit/(Loss) 5.5 (29.8) EPS/(LPS) 0.4 sen (1.8) sen

Note:

  • 1. Segmental Revenue and Operating Profit is post inter-segment eliminations
  • 2. Due to rounding, numbers may not tally with the total
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Shareholders' Funds 2,387.7 2,372.3 Non-Controlling Interests 8.6 9.2 Long Term Loan 208.6 178.9 Long Term Lease Liabilities 9.6 8.6 Payables 739.3 645.5 Short Term Lease Liabilities Derivatives 0.5

  • 2.0

1.6 Total Equity & Liabilities 3,354.3 3,218.0

Quarterly IR Updates 19

Financial Updates

Balance Sheet

Balance Sheet (RM 'm) Mar 2020 Dec 2019 Non-Current Assets 2,076.4 2,034.9 Inventories 3.3 4.4 Receivables 615.1 504.1 Derivatives 7.8

  • Cash

651.0 673.9 Others 0.8 0.8 Total Assets 3,354.3 3,218.0

  • Total assets of RM3.4bil

▪ Higher Non-Current Assets – Increase in Receivables and PPE ▪ Higher Non-Current Liabilities – Higher payables and borrowings from additional disbursement of loan for the construction of Dry Dock No. 3 ▪ Lower Cash – Outflow on the remaining capital spending for the construction of Dry Dock No. 3

  • NTA per share of RM1.50

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

NTA per share RM1.50 RM1.49

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Quarterly IR Updates 20

182 1,145 144 2,644

  • 500

1,000 1,500 2,000 2,500 Dec16 Dec17 Dec18 Dec19 Mar20 629 1,273 785 2,958 2,735 500 1,000 1,500 2,000 2,500 3,000 3,500 Dec16 Dec17 Dec18 Dec19 Mar20

RM (‘000) RM (‘000)

Note:

  • 1. New Order Intake excludes Marine Business segment
  • 2. No New Order Intake as of March 2020

Backlog New Order Intake

Marine Business Unit 3.2% Heavy Engineering Unit 96.8%

RM2,734.5 mil

MHB Backlog as of 31 March 2020

Backlog & Order Intake

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Quarterly IR Updates 21

Business Highlights Projects Financials

Shareholding Information

Key Focus Areas

4

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Quarterly IR Updates 22

Corporate Updates

Shareholding Information & Share Price

66.50% 3.26% 6.60% 8.50% 9.81% 5.33% MISC Foreign Investors Urusharta Jamaah Technip Other Malaysian Shareholders Others Lembaga Tabung Angkatan Tentera (LTAT) 2.23% 2.23% EPF 1.60% 2.29% Amanah Trustees 1.50% 2.10% Note: Others include the following: Dec-19 Mar-20 66.50% 2.91% 6.60% 8.50% 8.87% 6.62%

As of 31 Dec 2019 As of 31 Mar 2020 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 1/Jan/20 1/Feb/20 1/Mar/20

Share Price (RM)

0.96

07/01/2020 31/Mar/20

0.29

19/03/2020

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Quarterly IR Updates 23

Business Highlights Projects Financials Shareholding Information

Key Focus Areas

5

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Quarterly IR Updates 24

Backlog & Order Intake

Heavy Engineering Tenders Worth

RM17.03 billion have been submitted as of March 2020

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

  • ffshore 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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25 Quarterly IR Updates