22/08/2026

SATURDAY | AUG 22, 2026

12

BIZ & FINANCE

BIZ & FINANCE

MMHE Q2 net profit soars, lifted by heavy engineering

Bus Cap delivers stronger performance in second quarter PETALING JAYA: ACE Market-listed bus builder Bus Cap Bhd, Malaysia’s first pure-play bus builder, saw its revenue increase 39.7% quarter-on quarter (QoQ) to RM26.95 million for Q2 ended June 30, 2026 (FY26) from RM19.28 million in Q1 FY26, driven by the scheduled delivery of semi-high deck and single deck buses. Gross profit rose 50.5% QoQ to RM5.97 million, with gross margin expanding to 22.1%. Normalised profit after tax (PAT), excluding RM1.20 million in one-off, non-deductible listing expenses incurred in connection with the group’s listing on June 3, 2026, rose 29.1% QoQ to RM3.27 million, compared with RM2.53 million in Q1 FY26. The adjustment reflects the non recurring nature of the listing expenses and provides a clearer view of the group’s underlying operating performance for the quarter. For the cumulative six months (1H) of FY26, Bus Cap recorded revenue of RM46.23 million and gross profit of RM9.93 million. Normalised PAT reached RM5.80 million, translating to a normalised PAT margin of 12.6%, after excluding the one-off, non-deductible IPO-related expenses of about RM1.20 million. Bus manufacturing served as the primary revenue engine, generating RM45.16 million (97.7% of total 1H FY26 revenue), while repair and maintenance services contributed RM1.07 million. Executive director Bernard Ng Chong Yan ( pic ) said the group’s Q2 results confirm that its core manu facturing operations are being executed effectively. “Higher delivery volumes and sustained commercial customer demand drove solid sequential improvements across revenue, gross profit and normalised earnings.” The group’s post-IPO balance sheet provides a stronger platform for its next phase of expansion. As of June 30, 2026, total equity stood at RM51.08 million, while net assets per share increased to 13.32 sen from 6.16 sen as of Dec 31, 2025. Cash and fixed deposits stood at RM25.93 million, with gearing ratio at 0.12 times. Importantly, RM18.35 million of IPO proceeds remained unused as of June 30, including RM9.1 million allocated for construction of a

million from RM884.7 million in the same period last year, mainly driven by stronger contributions from the heavy engineering segment. As a result of higher revenue, the group’s operating profit improved significantly to RM85.4 million from RM28.5 million in H1’25. For H1’26, the heavy engineering segment recorded revenue of RM1.29 billion, an increase of RM663.2 million from H1’25, mainly due to ongoing projects advancing into higher construction phases. In line with the stronger revenue performance, the segment re gistered an operating profit of RM72.3 million, up RM68.6 million from RM3.7 million in H1’25. The increase was mainly due to higher project activity and the positive impact of finalising post sail-away projects. Meanwhile, the marine segment recorded revenue of RM215.3 million in H1’26, a decrease of RM39.2 million from RM254.5 million in H1’25. The lower revenue was mainly due to fewer vessel repairs, while the corresponding period included revenue from the finalisation of a floating storage and offload (FSO) vessel in conversion work that has since sailed away. The segment recorded operating

profit of RM14.3 million in H1’26, RM14.1 million lower compared with operating profit of RM28.4 million in H1’25, mainly due to lower revenue from repair works in the current period while corres ponding period included profit from the finalisation of FSO conversion work. In the Bursa Malaysia filing, MMHE said the heavy engineering segment will maintain a strategic and selective approach to securing a high-quality order book across conventional and new energy sectors, both domestically and inter nationally, to support a balanced portfolio while maintaining strong project execution discipline. MMHE said although geopolitical conflicts in West Asia affected global ship trading, docking, and repair operations, long-term marine repair demand is expected to remain resilient, underpinned by LNG carrier dry-docking requirements amid the growing importance of the liquefied natural gas value chain.

o Earnings surge 502% year-on-year to RM60.59 million, revenue jumps 129% to RM986.72 million

PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) saw revenue jump by 128.6% to RM986.72 million for the second quarter ended June 30, 2026 (Q2’26) from RM431.57 million in the same quarter last year, largely driven by higher revenue contri bution from the heavy engineering segment. In line with the higher revenue, the group recorded an operating profit of RM67.4 million, an improvement of RM54.2 million compared with RM13.1 million in the corresponding quarter last year. Net profit soared 502.6% to RM60.59 million in Q2’26 from RM10.05 million in Q2’25. According to a filing in Bursa Malaysia, MMHE’s heavy engi neering segment recorded higher revenue of RM870.2 million in the current quarter, an increase of RM560.2 million from the same quarter last year. The increase was mainly due to ongoing projects advancing into PETALING JAYA: Velesto Energy Bhd expects its financial performance to strengthen in the coming quarters, supported by contracted activity. President Megat Zariman Abdul Rahim ( pic ) said five of the group’s six rigs are contracted until the end of 2026, with a healthy RM1.3 billion remaining order book and RM3.7 billion in prospects as at July 2026. “We maintain strong operational performance, achieving 99.9% uptime, while advancing our asset light growth strategy through securing the Hibiscus contract via a third-party rig and the Chevron i-RDC 2.0 contract for Naga 8. “We also continue to actively pursue opportunities for Naga 3. With sustained focus on energy security, we see continued demand for jack-up drilling services in Malaysia and across Southeast Asia,” he said. Velesto recorded revenue of RM154 million for the second quarter ended June 30, 2026 (Q2’26), while profit after tax (PAT) was RM1 million, and Ebitda stood at RM54 million. Utilisation rate came in at 66%, and the average daily charter rate was US$103,000 a day. “While we recorded a softer performance in Q2 2026, mainly due to lower utilisation and daily charter rates, the group is committed to securing long-term utilisation and maintaining financial resilience,“ Megat Zariman said. Supported by a healthy order book, the group remains cautiously

later construction phases, coupled with the finalisation of post-sail away projects. The segment registered an operating profit of RM62 million, up RM60.5 million from RM1.5 million in the same quarter last year. The stronger performance was mainly attributable to higher revenue recognised during the quarter and the finalisation of post-sail-away projects, which contributed positively. Revenue from the marine seg ment for Q2’26 amounted to RM116.6 million, a marginal decrease of RM5.1 million compared with the same quarter last year, primarily due to a lower number of vessel repairs offset by higher revenue from conversion projects. In tandem with lower revenue, the segment recorded an operating profit of RM7.5 million in Q2’26, down from RM11 million in the same quarter last year. For the first half of FY26 (H1’26), MMHE recorded revenue of RM1.5 billion, an increase of RM624

“In response to heightened competition, the group will remain focused on strengthening its presence in targeted market segments while positioning itself to capitalise on evolving regional shipping patterns and emerging market oppor tunities,” it said in the filing. Velesto cautiously optimistic, backed by RM1.3b order book

quarter of 2027 and Naga 5 until the first quarter of 2027, while Naga 6 is contracted until the fourth quarter of 2026. Meanwhile, Naga 8 has com menced its integrated rig, drilling and completion services scope for Chevron and is contracted until the first quarter of 2028. The group also operates a third party rig under contract with Hibiscus Petroleum Bhd until the third quarter of 2026. Velesto is actively tendering for work under customers’ 2027 drilling programmes to sustain operational continuity and enhance revenue visibility. In the Bursa Malaysia filing, Velesto said the group’s primary focus remains on maximising sustainable shareholder returns. “Supported

new factory and RM5.03 million for purchase of new machines. Bus Cap re mains positive on prospects for the commercial transport sector.

by a healthy order book, the group remains cau tiously optimistic about its pros pects for 2026,” it added.

Naga 8 has started its integrated rig, drilling and completion services scope for Chevron and is contracted until the first quarter of 2028. – VELESTO PIC

tensions in the Middle East.

optimistic about its prospects for 2026. Velesto declared a second interim dividend of 0.25 sen per share, bringing year-to-date dividends declared to 1.0 sen per share. In a filing to Bursa Malaysia, Velesto noted that Brent crude oil averaged US$103 per barrel in Q2 of 2026. The US Energy Information Administration forecasts that prices will average US$95 per barrel for the full year because of ongoing geopolitical

It also noted that the global demand for jack-up rigs is projected to remain strong, with utilisation of approximately 82% in 2026. For the drilling services segment, Velesto said the Naga 2 is

currently operating under a five-year contract with Petronas Carigali Sdn Bhd. Naga 4 is con tracted until the second