KUALA LUMPUR: Marine & General Bhd (M&G) returned to the black, posting a net profit of RM148,000 in the fourth quarter (Q4) ended December 31, 2018 from a net loss of RM154.74 million recorded in the same period a year ago.
In a filing to Bursa Malaysia today, the marine logistics company said the improvement was due to one-time vessel depreciation adjustment amounting approximately RM9 million.
This also include non-recurring vessel impairment loss of RM202 million incurred during the preceding year corresponding quarter.
Its revenue in Q4 increased 32.8 per cent to RM51.31 million from RM38.65 million, in line with the higher charter activity of the upstream division.
For the 12 months, M&G posted a net loss of RM41.09 million from a net profit of RM152.43 million, while revenue grew 11.8 per cent to RM170.02 million from RM152.08 million.
Moving forward for its upstream division, M&G said its main operating subsidiary of the upstream division, Jasa Merin (Malaysia) Sdn Bhd (JMM) will be able to secure additional mandates that would enable it to improve its vessel utilisation, which has risen from 48 per cent in 2017 to 60 per cent in 2018.
The decline in oil price which started in mid-2014 has had a direct and adverse impact on JMM where its vessel utilisation fell from an average of 88 per cent in 2014 to an average of 51 per cent and 48 per cent for 2016 and 2017 respectively.
JMM had on February 6, 2018, received approval from the Corporate Debt Restructuring Committee (CDRC) of Bank Negara Malaysia for its application for assistance to mediate between JMM with its financiers.
“Whilst the mediation through CDRC continues, JMM is actively pursuing available opportunities.
“The board however, remains cautious on the prospects of the upstream division amidst the continuing weak daily charter rate,” it said.
For its downstream division, M&G said it is currently building a new chemical tanker as part of its effort to grow the chemical fleet in anticipation of the potential business opportunities created by the Pengerang Integrated Petroleum Complex, which will be coming onstream in 2019.
In addition to adding more vessels during the year, the division recorded higher fleet utilisation in 2018 to 91.9 per cent from 84 per cent in the preceding year.
“The group sees further growth opportunities within this segment and will continuously evaluating opportunities for additional investment in the future,” it said.
Sumber: New Straits Times