KUALA LUMPUR (May 7): Maybulk Bhd (KL:MAYBULK) swung to a net loss of RM52.92 million in the first quarter, from a net profit of RM3.16 million a year earlier, mainly due to a RM54.03 million currency translation loss arising from the liquidation of a foreign subsidiary.

The group said the foreign exchange translation loss — previously recognised under other comprehensive income and foreign currency translation reserve — was accounted for as profit and loss following the liquidation of the foreign subsidiary in the first quarter ended March 31, 2026 (1QFY2026).

This was an accounting adjustment with no cash flow impact, Maybulk said in a bourse filing on Thursday.

Excluding the impact of the subsidiary liquidation and unrealised forex, the group posted a profit after tax of RM660,000 in 1QFY2026.

The last time Maybulk posted a quarterly loss was in 4QFY2024, with a net loss of RM2.37 million.

Quarterly revenue fell 15% to RM18.19 million from RM21.46 million in 1QFY2025, dragged mainly by the group's shelving and storage solutions segment. The segment’s revenue declined 34.5% to RM9.51 million from RM12.79 million due to lower customer demand and lower selling price amid competition from foreign competitors and a softer US dollar.

Meanwhile, the shipping bulkers segment recorded a marginally higher revenue of RM8.68 million, supported by a 26% increase in average charter rates, although partially offset by the strengthening of the ringgit against the US dollar.

Maybulk said revenue and profit from its vessel Alam Kuasa are expected to stay stable in 2026 as the vessel operates under a long-term contract with fixed charter rates subject to bunker price adjustments and shipping route and will not be affected by the volatility of charter rates in open market.

However, the group cautioned that ongoing geopolitical tensions in West Asia could raise fuel and operating costs for the vessel, although most of these additional costs can be passed on to customers.

For its shelving and storage solutions business, the group expects local demand to remain stable for the rest of the year, although facing pricing pressure amid competition.

In overseas markets, the Middle East conflict may also negatively impact the export volume as transportation and freight costs are expected to be higher, said Maybulk.

The group’s share price closed unchanged at 39 sen, giving a market capitalisation of RM351 million.