KUALA LUMPUR: A lower impairment loss for Malaysia Marine and Heavy Engineering Bhd (MMHE) in the financial year ended Dec 31, 2021, resulted in a narrower net loss of RM270.41mil compared to a net loss of RM396.8mil in the year before.

       In a bourse filing, the group said impairment recognised in 2021 was RM9mil compared to RM300mil recognised in 2020.

       For the year, the group's revenue dropped 6.37% to RM1.47bil from RM1.57bil on lower revenue from the marine segment.

       According to MMHE, operating loss for the year widened to RM252.2mil compared to RM100.2mil in the prior year due to additional cost provisions recognised for ongoing projects in the heavy engineering segment.

       In the fourth quarter alone, the group's net loss was RM107.79mil compared to a net loss of RM8.56mil in the previous corresponding quarter.

       Revenue dropped 37.89% to RM432mil from the same quarter in 2020.

       Moving forward, the group said it is cautious over the prospects of its heavy engineering segment as oil majors are expected to continue spending modestly with the renewed uncertainty over the latest wave of Omicron cases and high material prices.

       It also expects continued challenges to its marine business due to an increase in LNG trade and more LNG vessel owners deferring dry-docking.

       Meanwhile, foreign clients will continue to prefer sending their vessels to countries with more relaxed restrictions due to the ongoing global border restrictions.

       "The Group is focused on replenishing its order book by pursuing business opportunities in new regions and segments.

       "Additionally, the Group continues to prioritise cost management efforts as well as safe execution and timely delivery of ongoing project," said MMHE.