Revenue jumps 52% in Q2 on resumption of exploration and drilling activities, and higher charter rates.
KUALA LUMPUR: Marine & General Bhd’s net profit for the second quarter ended Oct 31 (Q2 FY2023) returned to the black with RM16.67 million against a net loss of RM10.03 million a year ago.
In a filing with Bursa Malaysia today, the offshore support vessel charterer’s revenue improved 52% to RM82.09 million from RM54.11 million previously, in line with higher operating level and higher charter rates.
With the resumption of economic activities and recovery in oil prices, it said the market was more optimistic and exploration and drilling activities have resumed since the second half of 2021.
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Accordingly, the fleet utilisation for both upstream and downstream divisions increased to 74% and 86%, respectively, compared with the corresponding quarter a year earlier.
On a cumulative six-month basis, the group recorded RM157.43 million in revenue, representing a 59% rise against RM98.77 million a year ago.
“The increase was mainly due to higher charter activities and higher charter rates recorded by the upstream division in line with the resumption of drilling activities,” it said.
On its prospects for the current financial year, the group’s upstream division is looking forward to a more active year in line with Petronas’ positive outlook in its drilling and exploration activities.
For the downstream division, it is looking to more active charter operations, having added a new clean petroleum product tanker and having already secured time-charter contracts for all of its vessels.
Nevertheless, the board remains cautious about potential economic disruption resulting from the geopolitical instability in Europe as this could affect the regional and domestic economic climate.
The board is, therefore, cautiously optimistic about its prospects for the current financial year, the filing said.
At the close of trading today, Marine & General’s share price fell half a sen to 8.5 sen, valuing the company at RM61.5 million.