PETALING JAYA: Marine & General Bhd
(M&G) is maintaining a cautiously optimistic outlook for its upstream division, supported by long-term contracts for its 60m anchor handling tug supply (AHTS) vessels and the expected gradual increase in exploration and development activities in Malaysia from 2026 to 2028.
The company said the ageing regional offshore support vessel fleet, following limited investment in new vessels during the prolonged downturn in offshore services, is also expected to support a relatively stable market balance.
“Nevertheless, near-term conditions remain competitive, as normalisation in domestic charter rates and more competitive tendering may affect margins.
“The division also faces industry-wide challenges from the energy transition, rising drilling and operating costs, and increasing environmental, social and governance compliance requirements,” the firm said in a statement following its AGM.
M&G said all eight ordinary resolutions that were presented for consideration by the company’s shareholders at the AGM were duly passed.
Separately, M&G said focus will continue to be on operational reliability, cost management, vessel availability and fleet optimisation to support charter performance and resilience.
“For the downstream division, the Malaysian tanker market is expected to remain stable in the near term, supported by consistent downstream activity and refined product distribution.
“The focus will be on improving fleet utilisation and operational efficiency while remaining mindful of cost pressures and decarbonisation requirements.”
For the marine services division, it said M&G WHS Engineering Sdn Bhd commenced operations during the financial year 2026 ended April 30, and is expected to provide an additional avenue for the group to broaden its business activities.
Overall, M&G said it is maintaining a “neutral” outlook for the next financial year.
