M&G operations remain steady amid geopolitical risks


KUALA LUMPUR: Marine & General Bhd (M&G) maintains a neutral outlook as it remains mindful of global economic uncertainties and geopolitical risks, while its operations remain unaffected due to its Southeast Asia focus.

The group said recent geopolitical tensions have led to volatility in global energy markets, but there has been no direct operational impact to date.

“The group will continue to monitor developments and assess any potential implications to regional offshore activity,” it said in a statement.

It added that it will focus on operational reliability, cost management and vessel availability to support charter performance, while navigating challenges from energy transition pressures, rising costs and stricter ESG compliance requirements.

In the third quarter ended Jan 31, M&G’s net profit rose 42.6% to RM3.6 mil, lifting its nine-month earnings 12.7% higher to RM31.1 mil.

Revenue increased 7.3% to RM79.6 mil for the quarter, bringing year-to-date revenue to RM277.2 mil.

M&G said for the cumulative nine-month period, fleet utilisation for its upstream and downstream divisions stood at 75% and 82% respectively, compared with 72% and 80% in the corresponding period last year.

The upstream division remained the primary revenue contributor, accounting for 84% of the group’s revenue, while the downstream division contributed the balance.

The downstream division is expected to see steady operations, supported by consistent demand for Malaysian-flagged tankers, while fleet optimisation opportunities will continue to be assessed in line with market conditions.

“The board expects the engineering services division through M&G WHS Engineering Sdn Bhd to commence operations within the current financial year,” it said.

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