Marine & General Berhad (M&G) announced its results for the quarter ended 31 July 2023 today, reporting a revenue of RM84.6 million, representing a 12% improvement compared to the revenue recorded in the preceding year corresponding quarter.
This improvement is in line with an increase in operating level during the current quarter. Accordingly, the fleet utilisation for both Upstream and Downstream Divisions was 78% and 85% respectively as compared to 78% and 90% respectively recorded in the preceding year corresponding quarter.
The Upstream Division continued as the main revenue contributor, generating 75% of the Group’s revenue, while the Downstream Division generated the balance 25%.
M&G had increased the economic useful life of its OSV fleet from 15 years to 20 years effective the second quarter of the preceding financial year to be more aligned with the internal practice within the industry and PETRONAS’ decision to extend service period for such vessels to 20 years. As a result, the Group has incurred lower vessel and equipment depreciation expenses in the current quarter than the preceding year corresponding quarter.
Taking into account higher revenue and lower depreciation expenses, the Group recorded a profit before taxation of RM11.4 million in the current quarter compared
to RM1 million loss before taxation during the preceding year corresponding quarter.
Marine Logistics – Upstream Division
The Upstream Division recorded a revenue of RM63.3 million in the current quarter, representing 12% higher revenue than the preceding year corresponding quarter. The increase was in line with the higher charter activities and higher charter rates, especially in the 70M AHTS vessel segment during the period.
The Division recorded RM12.4 million profit before taxation in the current quarter as compared to RM1.1 million loss before taxation in line with higher revenue recorded and lower depreciation expenses incurred during the current period.
Marine Logistics – Downstream Division
The Downstream Division recorded a revenue of RM21.3 million in the current quarter, representing 14% higher revenue than the preceding year corresponding quarter. The increase was in line with the higher charter activities following the deployment of a third-party tanker on time charter in the second quarter of the preceding year and increase in tanker charter rate.
The Division recorded marginal loss before taxation for the current quarter, as compared to RM1.1 million profit before taxation in the preceding year corresponding quarter mainly due to higher vessel repair and maintenance expenses incurred during the current quarter.
