KUALA LUMPUR (Dec 16): Marine & General Bhd's (KL:M&G) net profit rose 46.7% to RM12.1 million in the second quarter ended Oct 31, 2024 (2QFY2025), from RM8.22 million a year ago, as higher charter rates lifted its revenue.

Earnings per share increased to 0.54 sen from 0.37 sen previously, the offshore support vessel (OSV) operator said in a bourse filing on Monday. No dividend was proposed for the current quarter.

Quarterly revenue grew 1.3% year-on-year (y-o-y) to RM93.1 million from RM91.8 million, mainly attributed to higher charter rates, supported by rising oil drilling activities and improved regional economic conditions.

The increase came despite lower utilisation rates in both upstream (75%, from 81% in 2QFY2024) and downstream division (77%, from 91%).

Its upstream division remained the primary revenue contributor, accounting for 84% of total revenue in 2QFY2025, while the remainder was contributed by the downstream segment.

For the cumulative six months ended Oct 31 (6MFY2025), net profit surged 60.2% y-o-y to RM15.6 million from RM9.42 million, as revenue increased to RM184.3 million from RM176.5 million.

Looking ahead, M&G anticipates its upstream division to maintain strong vessel requirement and activity levels throughout the rest of FY2025, despite regulatory challenges, positioning the division for continued growth.

For its downstream division, the company expects stable operations, driven by robust demand for Malaysian-flagged tankers and ongoing economic recovery. Fleet expansion plans are also being evaluated to address market opportunities.

However, the group flagged external risks, including geopolitical instability in the Middle East and Europe, as well as potential policy shifts in the US which will see Donald Trump taking over as president next month.

On Monday, M&G's shares fell three sen or 10.3% to close at 26 sen, giving the company a market capitalisation of RM203 million.