KUALA LUMPUR: Marine & General Bhd returned to the black for the third quarter ended Jan 31, 2024 (Q3FY24) with a net profit of RM13.28 million from a net loss of RM905,000 a year ago.
Its revenue for the quarter rose 20 per cent to RM88.4 million from RM73.69 million in the same quarter the previous year, in line with an increase in operating level during the current quarter.
Accordingly, the fleet utilisation for both upstream and downstream divisions was 77 per cent and 78 per cent respectively as compared to 69 per cent and 92 per cent respectively recorded in the preceding year corresponding quarter.
The upstream division continued as the main revenue contributor, generating 77 per cent of the group's revenue, while the downstream division generated the balance 23 per cent.
During the current quarter, Marine & General disposed-off one tanker under the downstream division and recognised a gain of RM9.7 million.
For the cumulative nine-months, the company's net profit rose to RM28.91 million from RM14.81 million in the same period the previous year.
Revenue for the period climbed 14.6 per cent higher to RM264.86 million from RM231.12 million a year prior.
The increase was in line with higher charter activities and charter rates for both upstream and downstream divisions.
"The upstream division looks forward to an active year in line with Petronas' positive outlook for its drilling and exploration activities as highlighted in its activity outlook for 2023-2025.
"The board expects the vessel utilisation and charter rate increase to continue in the current financial year, although at a slower rate than the previous financial year," said executive chairman Tan Sri Mohd Azlan Hashim.
He added the division is looking at fleet optimisation measures to achieve better utilisation moving forward.
"Nevertheless, the board continues to be cautious about the potential economic disruption brought about by the geo-political instability in Europe and the MiddleEast that could affect the regional and domestic economic climate. In view of the foregoing, the board is cautiously optimistic on the prospects for the rest of the financial year," he said.