It didn't help that revenue also contracted 69% year-on-year to RM2.38 million in 2QFY17, from RM7.72 million a year ago, amid lower fabrication activities.
In a bourse filing, TH Heavy said the widening of its losses was due to unrealised forex loss of RM1.4 million and the exclusion of unrealised forex gain of RM8.7 million recorded in the previous year’s corresponding quarter.
For the six months ended June 30 (1HFY17), net loss shrank 6% to RM37.97 million, from RM40.29 million, while cumulative revenue plunged 79% to RM4.63 million, from RM22.24 million.
Going forward, the group expects the fabrication business to remain challenging, in view of the competitive environment and major oil firms' move to cut capital expenditure.
“The group has expanded into ship building activities and also plans to expand into the refurbishment and maintenance works and non-oil and gas related fabrication works, which is expected to provide a more stable and recurring income to the group,” the filing said.