Following the briefing on financial performance, shareholders were briefed on the operation of the Upstream and Downstream Divisions of the M&G Group, shareholders also approved all ordinary resolutions presented during the AGM.
The shareholders were informed that during the financial year under review, vessel utilisation at the Upstream Division firmed up to approximately 73% compared to 66% previously. Daily Charter Rates also marginally improved over the rates recorded in the prior financial year, albeit still below the previous peak in 2014. 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 15.5 million man-hours without any Loss Time Injury. This is a commendable achievement given that the last LTI incident was in April 2013.
The shareholders were subsequently briefed on the operations of the Downstream Division. It was explained that Downstream Division was directly and adversely affected by the Covid-19 pandemic. Fortunately, with the pandemic brought under control and subsiding, by the middle of 2021, the economy and correspondingly the transportation sector improved significantly. During the financial year under review, the Division was able to secure new time-charter contracts and reduce its reliance on voyage-charters thereby improving fleet utilisation to 76%.
With regard to the prospects of the M&G Group going forward, it was explained that the prospects for the Upstream Division are dependent on an increase in exploration and drilling activities. The shareholders were subsequently informed that the
Upstream Division looks forward to an active year in line with PETRONAS’s positive outlook in its drilling and exploration activities as highlighted in its Activity Outlook for 2023 – 2025.
On Downstream Division, the shareholders were briefed that commercial prospects over the medium term remain positive given the Division’s excellent operating standards that will ensure continued commercial competitiveness, as well as the shortage of Malaysian-flagged tankers in the market.
Speaking at the end of the AGM, the Company’s Executive Chairman, Tan Sri Mohd Azlan Hashim said, “The Company got a good opportunity to provide a briefing on its performance for the financial year ended 30 April 2023 and prospects going forward.