KUALA LUMPUR (April 7): Marine & General Bhd (KL:M&G) is acquiring a clean petroleum product tanker for RM55.19 million as part of its downstream vessel optimisation strategy aimed at boosting competitiveness in the marine logistics sector.

In a bourse filing on Monday, the offshore support vessel player said its wholly-owned subsidiary, M&G Tankers Sdn Bhd (MGTSB), has entered into a vessel sale and purchase agreement with Muhibbah Marine Engineering Sdn Bhd (MMESB) — a wholly-owned subsidiary of Muhibbah Engineering (M) Bhd (KL:MUHIBAH) — to acquire the vessel named JM Sutera 9 (JMS9).

The group said it will finance the acquisition through a combination of internal funds of up to RM25 million and bank borrowings for the balance.

Built in 2022 by MMESB, the steel oil tanker is currently on a bareboat charter to MGTSB. The acquisition, which follows the disposal of three older vessels in the past one year, is expected to reduce the average age of M&G’s downstream chemical and oil tankers from 12 years to 9.7 years.

M&G’s downstream division currently operates four chemical tankers and one clean petroleum product tanker, serving clients in the petrochemical and oleochemical industries. The group believes the commercial prospects for its tanker fleet remain favourable in light of continued economic activity and national growth.

The JM Sutera 9 is a Malaysian-flagged vessel registered at Port Klang, with a gross tonnage of 6,976 metric tonnes. It is classified by Bureau Veritas and is expected to have a service lifespan of 25 years.

The acquisition is expected to be completed by the end of the current financial year.

For the cumulative nine-month period ended Jan 31, 2025 (9MFY2025), M&G's net profit slid more than 4% 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.

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

Shares in M&G closed down two sen or 7.41% to 25 sen on Monday, giving the group a market capitalisation of RM195.22 million.

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