MGB reports higher 1Q earnings


PETALING JAYA: Marine & General Bhd will continue to exercise caution as the offshore support vessel industry is facing challenges from the lingering uncertainty in relation to oil and gas activities in Sarawak, amidst the evolving regulatory requirements.

For the first quarter ended July 31, 2025 (1Q25), the offshore support vessel provider’s net profit was up by 28% year-on-year (y-o-y) to RM16.6mil or earnings per share of 0.75 sen. Revenue was up by 9% y-o-y to RM99.4mil.

In a filing with Bursa Malaysia, the group said the aforementioned regulatory requirements have delayed certain greenfield projects. Other challenges in the industry include the expected declining oil prices as global oil supply continues to exceed demand, climate and environment considerations, the development of green energy sources and the geo-political conflicts in the Middle East and Europe that could affect oil supply and demand.

The company said its downstream division anticipates steady operational levels, supported by consistent demand for Malaysian-flagged tankers. It added fleet rationalisation has positioned the division on a firmer footing to deliver sustained profitability, with further optimisation opportunities to be assessed in line with market conditions.

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