KUALA LUMPUR: Marine & General Bhd's (M&G) net profit surged 75.3 per cent to RM13 million in the first quarter ended July 31, 2024 (1Q25) from RM7.41 million a year ago, on the back of higher revenue.
The group's revenue increased 7.8 per cent to RM91.19 million from RM84.62 million previously, driven by higher charter rates for the offshore support vessels.
This was in line with the sustained rise in oil drilling activities and the general economic recovery in the region, the group said in a statement.
As a result, M&G registered higher earnings per share of 0.58 sen compared to 0.33 sen in 1Q24.
The group said fleet utilisation for upstream and downstream divisions was 77 per cent and 91 per cent respectively as compared to 78 per cent and 85 per cent respectively recorded in the preceding year corresponding quarter.
The upstream division continued as the main revenue contributor, generating 77 per cent of the group's revenue for the quarter, while the downstream division generated the balance 23 per cent.
M&G said although the administration of oil and gas activities in Sarawak may change with the involvement of Petroleum Sarawak Bhd, the group remains confident and expect minimal impact as the requirement for vessels will remain intact.
Accordingly, the upstream division looks forward to a more active year ahead.
The group added that its downstream division expects the charter operations to continue to be active during the current financial year, buoyed by the sustained economic activities and national economic growth that is expected to surpass 2023's performance.
"Despite the reduced number of vessels after the disposal of two out of its eight vessels in the preceding financial year, the commercial prospects over the medium term remain positive.
"This is given the division's excellent operating standards that will ensure continued commercial competitiveness, as well as the demand for Malaysian-flagged tankers in the market."
M&G added that downstream division remains committed to its long-term growth plan with fleet expansion being continuously considered based on market demand and strategic opportunities.
Nevertheless, M&G is also cautious about the potential economic disruption brought about by the continued geo-political instability in the Middle East and Europe, and the outcome of the United States Presidential election which could give rise to policy changes that could affect global and domestic economic climate.