KUALA LUMPUR (June 21): The offshore support vessel (OSV) player Marine & General Bhd’s (KL:M&G) net profit fell 41.5% to RM19.46 million in the fourth quarter ended April 30, 2024 (4QFY2024), from RM33.27 million a year before, due to higher vessel repairs incurred and a lower net reversal of vessel impairment.
It recognised RM26.4 million for a net reversal of vessel impairment in 4QFY2024, compared to RM42.6 million a year ago.
Earnings per share came in lower at 0.88 sen in 4QFY2024, from 1.5 sen in 4QFY2023.
Quarterly revenue increased by 9.05% to RM83.06 million, from RM76.17 million a year before. The increase was due to higher fleet utilisation and charter rates for OSVs in line with the continued increase in oil drilling activities and the general economic recovery in the region.
Its upstream division's fleet utilisation was higher at 77% in 4QFY2024, compared to 73% in 4QFY2023, while downstream division fleet utilisation was lower at 75% versus 84% a year prior.
The group said the upstream division continued to be its main revenue contributor, generating 80% of total revenue in 4QFY2024, while its downstream division contributed 20% of its revenue.
No dividend was proposed for the current quarter and the entire FY2024.
For FY2024, its net profit inched up 0.61% to RM48.38 million, from RM48.09 million a year before, while annual revenue rose 13.22% to RM347.92 million, from RM307.28 million a year before.
Moving forward, Marine & General expects vessel utilisation and charter rates for the upstream division to continue to increase in the next financial year, although at a slower rate than FY2024.
For the downstream division, the group said it is looking at further fleet optimisation measures to achieve better utilisation and financial performance moving forward.
Nonetheless, the group said it continues to be cautious about the potential economic disruption brought about by the geo-political instability in Europe and the Middle East that could affect the regional and domestic economic climate.