KUALA LUMPUR (Nov 28): Muhibbah Engineering (M) Bhd saw its net profit for the third quarter ended Sept 30, 2014 (3QFY14) grew marginally to RM20.27 million, from RM20.11 million a year ago, despite lower revenue.
Revenue for the quarter declined 20.9% to RM376.1 million, from RM475.44 million last year, due to timing difference, with higher recognition of revenue and related contribution from work-in-progress, and with the receipt of more components for the cranes and shipyard divisions in the previous quarter.
The group told Bursa Malaysia the improvement in net profit was underpinned by the cranes division — with delivery of more cranes, and airport concession division — with more airport passengers arrival.
Earnings per share (EPS) retreated to 4.78 sen, from 4.86 sen in 3QFY13.
For the nine months ended Sept 30 (9MFY14), its net profit was up 1.2 % to RM61.36 million, from RM60.64 million a year earlier. In contrast, revenue was down 2.4% to 1.24 billion, from RM1.27 billion.
Going forward, the group said the total outstanding secured order book in hand as at Nov 20, stood at RM2.13 billion.
The group is hopeful to secure some of the engineering and construction works from the Refinery and Petrochemical Integrated Development (RAPID) project, estimated to have an investment of RM89 billion.
Muhibbah shares were succumbed to heavy selling pressure earlier this month, as the company did not win the regasification terminal project in Pengerang. The stock tumbled to a 14-month low of RM2.20 on Nov 21.
Its closed down 8 sen or 3.33% at RM2.32 today, giving it a market capitalisation of RM995.82 million.
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