Uncertainties Cloud MMHE Earnings Visibility

Pending the transfer of SDE's employees to MMHE, seems they have too much on the plate right now....

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PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd's (MMHE) earnings visibility is clouded by project uncertainties, delays and intensifying competition, according to CIMB Research.

The research house noted that MMHE's orderbook was filling up more slowly than expected, thus indicating it was not necessarily the fabricator of choice for national oil giant Petroliam Nasional Bhd and even MMHE's parent MISC Bhd.

“MMHE's orderbook has shrunk from RM5.95bil in June 2010 to RM3.7bil currently,” it said.

CIMB Research also said that two widely anticipated major contracts, Turkmenistan's Block 1 Phase 2 project and Shell's Malikai project, might not be awarded so soon and may not go to MMHE.