Maybulk's net profit falls to RM8.44mil in 1Q

KUALA LUMPUR: Malaysian Bulk Carriers Bhd’s (Maybulk) net fell 43.7% to RM8.44mil in the first quarter ended March 31 (1Q), from RM15mil a year earlier.

Its revenue for the quarter dipped 16% to RM39.1mil from RM46.6mil last year, mainly due to lower hire days from a smaller fleet size.

In the notes accompanying its results, Maybulk said operating expenses dropped in 1Q due to lower depreciation and vessel operating expenses from a smaller fleet size, offset by the increase in depreciation of right-of-use assets and drydocking cost.

During the period, Maybulk recognised a gain of RM603,000 that arise from the unwinding of a hedge instrument from the full repayment of a loan. This gain was reflected in other operating income.

As at March 31, the group owns and operates a total of five vessels, of which one vessel was subsequently disposed of on May 4, 2022.

On prospects, Maybulk said the outlook for the drybulk shipping market in the next quarter remains positive overall.

However geopolitical risks and mounting inflation could have negative implications on the world economy which may impact the shipping market.

“The group is mindful of the volatile market conditions and have deployed a combination of short term as well as medium-term charters to secure earnings,” it said.