BUSINESS AND OPERATIONS REVIEW MARINE & HEAVY ENGINEERING BUSINESS Market review The prolonged decline in crude oil prices continued to impact negatively upon the Exploration & Production (E&P) environment in Malaysia leading to low demand for offshore structures. In line with this, Marine & Heavy Engineering Holdings Berhad’s (MHB) Offshore Fabrication Unit experienced a substantial drop in new orders for offshore structures akin to the drop that its competitors experienced. THE REDUCED DEMAND NEGATIVELY IMPACTED THIS BUSINESS UNIT’S CAPACITY, RATES AND TERMS. president/ceo’s report Average capacity utilisation rate between 90-95% Local market leader in ship repair business Only yard in Malaysia that has constructed deepwater structures 90-95% REDISCOVER I REBUILD I SUSTAIN 64
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