KUALA LUMPUR (March 26): Offshore support vessel player Marine & General Bhd’s (KL:M&G) third quarter net profit fell 80% to RM2.55 million from lower vessel utilisation.

Vessel repairs, scheduled docking and the disposal of two tankers led to lower utilisation in both the upstream and downstream divisions, leading to a drop in net profit for the quarter ended Jan 31, 2025, from RM13.28 million a year ago.  

M&G did not declare a dividend for the financial quarter under review.

Its upstream division contributes about 80% of revenue while the downstream division makes up the remainder.

Revenue for the quarter ended Jan 31, 2025 declined by 16%, falling to RM74.16 million from RM88.40 million in the previous year’s corresponding quarter.

For the cumulative nine-month period, the company reported a more than 4% decline in net profit to RM27.61 million, while revenue also dropped to RM258.41 million from RM264.86 million in the same period last year, mainly attributable to the disposal of two tankers in the preceding year.   

“The board recognises both opportunities and challenges within the sector. External risks, including geopolitical instability and shifts in global economic policies, remain key considerations.  

For the current financial year, the group maintains a neutral outlook, with operational decisions guided by market developments and economic conditions, the group said in a bourse filing. 

At Wednesday’s closing bell, M&G closed half a sen or 1.8% higher at 28.5 sen, valuing the group at RM223 million. The stock is up 5.56% this year.