KUALA LUMPUR (June 30): Shipping firm Marine & General Bhd (M&G) returned to the black in its fourth financial quarter ended April 30, 2022 (4QFY22), registering a net profit of RM3.52 million compared with a net loss of RM10.27 million a year ago, mainly due to better vessel utilisation in the current quarter and deployment of all tankers of the downstream division under time charter as compared to three tankers in 4QFY21.

A net reversal of vessel impairment amounting to RM24.1 million in 4QFY22 compared with RM5.3 million in 4QFY21 also contributed to the improved financial performance.

As a result, it posted an earnings per share of 0.16 sen for 4QFY22 compared with a loss per share of 0.46 sen for 4QFY21.

Revenue for the quarter rose 35.2% to RM63.24 million from RM46.79 million in 4QFY21, underpinned by improved demand for oil products and higher fleet utilisation.

In a statement on Thursday (June 30), M&G said the upstream division continued as the main revenue contributor for the quarter, generating 77% of the group's revenue, while the downstream division generated the balance 23%.

For the full year FY22, however, the group recorded a net loss of RM28.34 million compared with a net profit of RM9.05 million in FY21, on restructuring of debts recognised in FY21. This is despite revenue increasing 16.5% year-on-year to RM219.64 million from RM188.54 million.

On prospects, M&G chairman Tan Sri Mohammed Azlan Hashim said the board remains cautiously optimistic for FY23 and expects further improvement in vessel utilisation and charter rates.

“The upstream division looks forward to a more active year ahead in line with Petroliam Nasional Bhd’s positive outlook in its drilling and exploration activities as highlighted in its Activity Outlook for 2022 to 2024.

“Further, in line with the positive outlook of the economy, which is recovering from the effects of the Covid-19 pandemic, the downstream division looks forward to more active charter operations in FY23, having already secured time-charter contracts for all of its vessels,” he said in the statement.

M&G shares closed unchanged at seven sen on Thursday, giving it a market capitalisation of RM47.86 million.