The outlook for Muhibbah Engineering (M) Bhd is bright if it could collect its receivables from Asian Petroleum Hub (APB), otherwise provisions would have to be made.

In a research note released here today, Kenanga Research said APB remained a concern given that more than RM200 million receivables were from the project.

Kenanga said it has lowered its financial years 2010 and 2011 net profit by 17 per cent and 11 per cent to RM46 million and RM52.1 million respectively factoring in slower recognition of profit from the APB project. - Bernama