KUALA LUMPUR: Marine & General Bhd's (M&G) net profit rose 46.7 per cent to RM12.06 million in the second quarter of Oct 31, 2024 (2Q25) from RM8.22 million a year ago, underpinned by strong performance in its upstream division.
Revenue for the quarter increased to RM93.06 million from RM91.83 million previously, mainly driven by higher charter rates in line with the sustained rise in oil drilling activities and the general economic condition in the region.
As a result, the group registered higher earnings per share of 0.54 sen compared to 0.37 sen in 2Q24, its filing to Bursa Malaysia showed.
The group's fleet utilisation for upstream and downstream divisions during the quarter was 75 per cent and 77 per cent respectively, as compared to 81 per cent and 91 per cent respectively, recorded in the preceding year's corresponding quarter.
The upstream division continued as the main revenue contributor, generating 84 per cent of the group's revenue for the quarter, while the downstream division generated the balance of 16 per cent.
For the first half of FY25 (1HFY25), M&G's net profit rose to RM25.05 million from RM15.63 million a year ago, while revenue increased to RM184.25 million from RM176.46 million.
On prospects, M&G said the evolving regulatory framework for the oil and gas sector remains an area of concern and continues to be closely monitored.
Nevertheless, the group remains confident that vessel requirements and overall activity levels will remain robust, ensuring the upstream division is well-positioned for an active financial year ahead.
In the downstream division, the group said operational activity is expected to remain steady, supported by strong demand for Malaysian-flagged tankers and ongoing national economic recovery.
"While the board remains optimistic about the sector's growth potential, it remains cautious about external risks, including geopolitical instability in the Middle East and Europe and potential shifts in the global economic environment due to US policy changes following the presidential election.
"Petronas' emphasis on safety and good operational track record positions the group well to navigate these uncertainties and maintain resilience.
"Consequently, the board maintains a cautiously optimistic outlook for the current financial year, underpinned by Petronas' strong pipeline of projects and Malaysia's improving economic fundamentals," it added.