KUALA LUMPUR (Sept 29): Marine & General posted a net profit of RM7.41 million in the first quarter ended July 31, 2023 (1QFY2024), compared with a net loss of RM947,000 a year earlier, thanks to higher charter activities and rates.
As a result, quarterly earnings per share rose to 33 sen, a substantial improvement from a loss per share of four sen previously.
Quarterly revenue rose 12.33% to RM84.62 million, from RM75.33 million in 1QFY2024, primarily due to the higher charter rates for both offshore support vessels and tankers.
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In a bourse filing on Friday, the offshore marine support services provider noted that its upstream division became the primary revenue contributor, generating RM63.3 million in the current quarter, representing 75% of the group’s revenue. This increase was attributed to higher charter activities and rates, particularly in the 70M AHTS vessel segment, following the resumption of drilling activities in late 2021.
Meanwhile, the outstanding 25% of the group revenue was generated by its downstream division, which recorded a revenue of RM21.3 million in the current quarter. This increase was driven by higher charter activities resulting from the deployment of a third-party tanker on a time charter in the second quarter of the preceding year and an increase in tanker charter rates.
On prospects, the group anticipates an active year for its upstream division, in line with Petronas’ positive outlook for drilling and exploration activities. The group also expects vessel utilisation and charter rate increases to continue in the current financial year, albeit at a slower pace than the preceding financial year.
“In relation to the downstream division, the division expects the charter operations to continue to experience a high level of utilisation in the current financial year, given all the vessels are on time-charter contracts,” the group stated.
However, the group remains cautious about the potential economic disruptions brought about by geopolitical instability in Europe, which could impact the regional and domestic economic climate. In light of these considerations, the group holds a cautiously optimistic outlook for the next financial year.
Shares in Marine & General Bhd closed 1.5 sen or 5.66% higher at 28 sen on Friday, valuing the group at RM198.93 million.
By By Choy Nyen Yiau. 29 September 2023.
Source: The Edge Malaysia. https://theedgemalaysia.com/node/684357. 29 September 2023.
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