Monday 23 Dec 2024
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KUALA LUMPUR (Dec 15): Marine & General Bhd's net profit fell 50.68% to RM8.22 million for the second quarter ended Oct 31, 2023 (2QFY2024), compared with RM16.67 million a year ago, when a non-recurring depreciation adjustment was made.

The adjustment followed the increase in the useful life of its offshore support vessels (OSVs) from 15 years to 20 years, the group said in a bourse filing.

Earnings per share declined to 0.37 sen from 0.75 sen.

Quarterly revenue, however, rose 11.9% to RM91.82 million from RM82.09 million in 2QFY2023, thanks to higher fleet utilisation and charter rates for both OSVs and tankers, in line with the continued increase in oil drilling activities and the general economic recovery in the region, the group said.

The upstream division continued as the primary contributor to revenue, contributing 74% of the total revenue, while the downstream division generated the remaining 26%.

For the first six months of FY2024, Marine & General posted a net profit of RM15.63 million, a slight decline compared with RM15.72 million in the same period of the previous year, while revenue rose 12.1% to RM176.45 million from RM157.42 million.

Looking ahead, the group anticipates an active year for the upstream division, aligning with Petronas’ positive outlook for its drilling and exploration activities as highlighted in its activity outlook for 2023 to 2025.

"The board expects vessel utilisation and charter rate increases to continue in the current financial year, although at a slower rate than the previous financial year," Marine & General executive chairman Tan Sri Mohd Azlan Hashim said in a statement.

He added that the downstream division expects charter operations to maintain higher levels of utilisation in the current financial year, given that all vessels are on time-charter contracts.

“Nevertheless, the board is also cautious about the potential economic disruption brought about by the geopolitical instability in Europe and the Middle East that could affect the regional and domestic economic climate.

"In view of the foregoing, the board is cautiously optimistic about the prospects for the rest of the financial year,” he added.

Shares in Marine & General settled one sen or 5% higher at 21 sen on Friday, giving the group a market capitalisation of RM148.21 million.

Edited ByS Kanagaraju
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