KUALA LUMPUR: Marine & General Bhd (M&G) expects an active year for its oil and gas (O&G) upstream division in line with Petroliam Nasional Bhd's (Petronas) positive outlook in its drilling and exploration activities.
During M&G annual general meeting (AGM) earlier today, shareholders were briefed that the prospects for the division were dependent on an increase in exploration and drilling activities.
M&G said oil prices had started to recover in mid-2021 and now reached pre-2015 levels, currently trading above US$90 per barrel.
"The shareholders were informed that during the financial year under review (ended Apr 30, 2022), vessel utilisation at the upstream division firmed-up to 66 per cent, an increase from the 58 per cent utilisation level recorded in the previous year.
"Daily charter rates (DCR) also marginally improved over the rates recorded in the prior financial year," it said.
M&G said the shareholders were further briefed that despite the current challenges, the upstream division was able to maintain a high standard of operational excellence and safety performance.
"Up to the end of the period under review, the upstream division accumulated approximately 13.9 million man-hours without any loss time injury (LTI).
"This is a commendable achievement given that the last LTI incident was in April 2013," it said in a statement today.
M&G said with regard to the prospects for the downstream division, demand for chemical and clean petroleum product (CPP) tankers would be dependent on continued demand for petroleum products.
"It was explained to the shareholders that in line with the positive outlook of the economy, which is recovering from the effects of the Covid-19 pandemic, the downstream division looks forward to more active charter operations in the current financial year, having already secured time-charter contracts for all of its vessels," it added.
Executive chairman Tan Sri Mohd Azlan Hashim said the company was encouraged by the positive response from shareholders to the briefing provided.
"I sincerely hope that the company's shareholders will continue to support the board in its objective to nurture its recovery and take the company forward," he said.
For FY22, M&G Group posted consolidated revenue of RM219.6 million, representing an improvement in the performance of 17 per cent compared to the result for FY21 where revenue of RM188.5 million was recorded.