Marine & General has updated on the vessel disposals it announced in 2023 and recently 2024 where it clarified the total net disposal proceeds was RM51 million.
The disposal was for wo clean petroleum product tankers, namely JM Sutera 5 being a 17 year old tanker, and JM Sutera 7 being a 15 year old tanker.
The company said after repayment of vessel financings, shareholder’s loan, redemption of preference shares and utilisation for working capital, the balance of the proceeds amount to RM 29 million. This sum it added will provide part of the financing required for M&G’s fleet renewal and optimisation strategy to replace its aging CPP tankers.
M&G also plans to renew its fleet by investing in additional chemical and CPP tankers that meet charterers requirements and taking into account environmental considerations.
The Board said it expects the renewal and optimisation programme to take approximately 2 years. However, the actual decision on the renewal and optimisation can only be finalised after decisions are made by prospective clients.
