PETALING JAYA: Marine & General Bhd (M&G) saw a net loss of RM22.51 million for the month of April due to an additional vessel impairment charge of RM18 million.
It posted RM16.21 million in revenue on the back of strong charter activities.
For the 16-month period, the group reported a net loss of RM76.35 million, while revenue came in at RM232.75 million.
M&G has changed its financial year end from Dec 31 to April 30 and that the financial period ending April 30, 2019 covers a 16-month period from Jan 1, 2018 to April 30, 2019.
In its upstream division, M&G said the decline in oil price which started in mid-2014 has had a direct and adverse impact on the offshore support vessel industry. Consequently, its operating subsidiary Jasa Merin (Malaysia) Sdn Bhd’s (JMM) vessel utilisation fell from an average of 88% in 2014 to an average of 51% and 48% for 2016 and 2017 respectively. Furthermore, the daily charter rate (DCR) for its vessels also fell by 38% from 2014.
M&G said the admission of JMM’s upstream division to the Corporate Debt Restructuring Committee (CDRC) of Bank Negara Malaysia is consistent with the group’s strategy to streamline its operations and optimise its financial resources to focus and proactively enhance both its upstream and downstream marine logistics business.
Whilst the mediation through CDRC continues, JMM is actively pursuing available opportunities, including securing additional charters that would enable it to improve its vessel utilisation, which has risen from 48% in 2017 to 62% in 2019.
“The board however, remains cautious on the prospects of the upstream division amidst the continuing weak DCR,” it said.
In its downstream division, M&G said its liquid bulk carriers has been fairly robust throughout 2017 and 2018, mirroring the demand for clean petroleum products.
