Marine & General Swings Back Black With RM23.6 Million Profit

Marine & General Berhad for the quarter ended 31 October 2022, reported revenue of RM82.1 million, representing a 51.7% improvement compared to the revenue recorded in the preceding year’s corresponding quarter.

This improvement is in line with an increase in operating level during the current quarter, as exploration and drilling activities resumed beginning the second half of 2021. Accordingly, the fleet utilisation for both Upstream and Downstream Divisions increased to 74% and 86% respectively as compared to from 69% and 76% recorded in the preceding year’s corresponding quarter.

In line with the lower depreciation expenses and higher revenue recorded during the quarter, the Group recorded RM23.6 million profit before taxation, an improvement from the RM11.2 million pre-tax loss recorded in the preceding year’s corresponding quarter.

For the current 6 months cumulative period, the Group recorded RM157.4 million in revenue, representing 59% increase from the preceding year’s corresponding period. The increase is mainly due to higher charter activities and charter rates recorded by the Upstream Division in line with the resumption of drilling activities by the oil majors.

In line with the higher revenue during the cumulative period and lower depreciation arising from the extension of OSV’s economic useful life, the Group recorded a pre-tax profit of RM22.6 million, an improvement from the pre-tax loss of RM34.2 million recorded in the preceding year corresponding period.

On the outlook, the board said it is cautious about the potential for economic disruption brought about by the geo-political instability in Europe that could affect the regional and domestic economic climate.