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Overview
Financial Highlight
Headlines
Business Background Marine & General Bhd is a Malaysian based investment holding company, involved in the upstream and downstream marine logistics business. It is engaged in providing offshore marine support services to oil and gas companies and tolled highway concessionaire. The company operates in Marine Logistics – Upstream and Marine Logistics – Downstream segments. It also offers downstream marine logistics services tankers to oil and gas companies and trading houses in the South East Asian region.
  Sam1026 May i know this company really got issue dividend?klscrenner show dy128.43 % is it true? 16/08/2018 1:31 AM gforce2 Sam1026 > That was a special dividend in 2017, after selling Silk Highway to PNB. Unlikely to have any dividends soon, as its core oil & gas business is still bleeding money. On the plus side, oil prices have trended upwards. It is starting to get some new contracts (3 yr, with option to extend): RM17m with Hess E&P, RM48m with Murphy Oil Sarawak. If you take these two contracts and divide by 36 months, it works out to about RM1.8m/mth additional revenue, or RM5.4m/quarter. I'm not sure what their profit margins are on these contracts, but even if you factor in these 2 contracts at RM2m profit/quarter, they are still operating at a loss of about RM16.6m/quarter. (Coincidentally, they are spending about RM16.6m/quarter on interest repayments alone!) As of 31-Mar-2018, M&G is sitting on about RM229m in cash/deposits/reserves/FDs. That might seem like a lot, but its total liabilities is almost RM1b! It's no wonder that they are currently working with CDRC/BNM to help restructure its debt load. I can think of a few ideas how this could pan out: 1. Convert the debt into equity. Bring down the debt to about RM200-300m, if possible. 2. A rights issue or private placement to raise fresh capital, to pare down debt. Similar effect to the 1st option, but might not be viewed favorably by shareholders. 3. M&A to create synergies & shareholder value. 17/08/2018 10:03 PM gforce2 It looks like the initial signs of recovery in the 2Q 2018 Financial Results. Some highlights: 1. Negotiated lower interest rates on their existing debts, thanks to CDRC. Recall 1Q2018, interest expenses were RM 16.6m, compared to RM 10.95m in 2Q2018! That's a 34% reduction in interest rates (effectively from ~6.7% to ~4.5% p.a. by my estimates). It also looks like they have started to pare down their debts, albeit slowly. 2. Downstream Division is finally turning a profit! 3. Upstream Division Fleet Utilization at 55%, not including the latest 2 contracts signed in July & August. Based on their 2017 Annual Report, they have 21 vessels under Upstream Division. 55% means that 11.55 vessels are being utilised. Add in the 2 contracts (2 AHTS vessels and 1 SSV pro-rata), 13.2 vessels... assuming only the new contracts added, next quarter's utilization should be about 63%, and increasing to 69% in 4Q. The new contracts will add about RM 3m revenue for 3Q, and RM 5.4m in 4Q onwards. === Analysis & Predictions: Their downstream division has 1 more ship to be deployed, which should add another RM 1m - 1.5m to revenue in the 4Q. There is also 1 more ship being constructed, to be ready in 2019. I expect the 3Q results to show a RM 9.5m - 10m loss, dropping to RM 7m loss in 4Q, assuming 69% utilization (Upstream). Daily Charter Rates (DCR) should improve, as oil prices are now hovering at USD70-75/barrel, compared to USD45-65/barrel in 2017. I predict M&G will be able to get their Upstream Fleet Utilization to about 75 - 80% in 2019, which should bring their quarterly losses down to about RM 3.5m - 4m. Downstream activities will help bring M&G back into profitability. I estimate M&G will need to expand to 8 - 9 tankers, before we start to see an overall net profit. Thankfully, they still have about RM 151m in FDs/money market, which should be enough to buy another 2 - 3 tankers. I still feel that they need to bring their debt ratios down to below RM 500m. At the re-negotiated rates, they are still burning about RM 44m a year on interest alone. Bringing the debt level to below RM500m should save about RM 22m/year. Unfortunately, there's no easy way to do this. Any debt-to-equity or rights issue at current prices will find it hard to raise RM 100m, let alone RM 500m. 25/08/2018 12:55 AM gforce2 http://www.bursamalaysia.com/market/listed-companies/company-announcements/6200025 https://www.theedgemarkets.com/article/marine-general-unit-get-three-contracts-petronas-worth-rm209m KUALA LUMPUR (June 24): Marine & General Bhd’s subsidiary Jasa Merin (Malaysia) Sdn Bhd has bagged three work awards from Petronas Carigali Sdn Bhd worth a total of RM20.9 million, for the provision of anchor handling tug & supply vessel. In a Bursa Malaysia filing today, the group said the contracts, worth approximately RM6.98 million each, will last for six months with an option to extend by another six months. It said the contracts are expected to contribute positively to the earnings of the group for the financial period ending April 30, 2020 (FY20). === 1. This should add RM10.47m revenue per quarter. 2. Fleet utilisation has generally been on an upward trend based on Q results ... upstream 55%, 60%, 73.4%, 65% (latest quarter was lower due to repair/maintenance and monsoon season); average of 63%. 3 AHTS vessels will boost utilisation up to ~79%, assuming all other contracts still on. 3. Will we see a Q profit soon? Possibly in the last quarter 2019, assuming their new chemical tanker comes online. 24/06/2019 9:15 PM gforce2 https://www.theedgemarkets.com/article/uem-sunrise-ni-hsin-masteel-marine-general-petchem-and-taliworks Offshore support services provider Marine & General Bhd's unit has bagged a contract from Hess Exploration and Production Malaysia B.V. worth approximately RM12.9 million with an additional RM6.5 million for an optional extended term. Marine & General said its subsidiary Jasa Merin (Malaysia) Sdn Bhd has been awarded the contract by Hess for the provision of one 120MT anchor handling tug supply vessel to support Hess' Malaysian drilling operations on July 11, 2019. Marine & General said the contract, which commenced on July 11, is for a primary duration of 12 months, with an option for Hess to extend for an additional six months. 14/09/2019 8:14 PM gforce2 https://www.theedgemarkets.com/article/marine-general-gets-vessel-supply-contract-petronas KUALA LUMPUR (Oct 2): Marine & General Bhd (M&G) has bagged a contract by Petronas Carigali Sdn Bhd for the provision of a unit of anchor handling tug and supply vessel for the petroleum arrangement contractors (PACs) production operations. M&G said the contract, received by Jasa Merin (Malaysia) Sdn Bhd, commenced on Sept 16 and has a duration of 709 days, with an option to extend the contract for a one-plus-one-year term. “The contract and option, estimated to have a value of approximately RM17 million for the primary term, is expected to contribute positively to the earnings of M&G for the financial period ending April 30, 2020 and beyond,” it said in a filing with Bursa Malaysia. === 1. That's another RM8.5m/yr in revenue (~ RM2.1m for the next quarter). 2. This should boost Upstream fleet utilization above 80%, assuming no other expiring contracts. 3. However, Upstream is still loss-making for M&G. 02/10/2019 8:23 PM gforce2 https://www.theedgemarkets.com/article/marine-general-proposes-debttoequity-scheme-restructure-subsidiaries-whopping-borrowings KUALA LUMPUR (Nov 27): Debt-laden offshore service vessel operator Marine & General Bhd (M&G) has proposed a debt-to-equity scheme that entails the issue of 1.5 billion new shares to restructure RM200 million of the total of RM923.2 million debts owed by its subsidiaries. JMM has entered into three separate agreements with Affin Bank Bhd, Maybank Islamic Bank Bhd and Bank Pembangunan Malaysia Bhd (BPMB). Meanwhile, JMG 3 and JMG 4 have signed facility agreements with BPMB. More info: http://www.bursamalaysia.com/market/listed-companies/company-announcements/6352837 === 1. Reduced debt by RM200m. RM50m upfront paid out to banks, and the balance RM150m as preference shares redeemable over 10 years (but only once the outstanding dues have been settled). 2. This was one of my debt reduction ideas from 2018. At that point in time, it seemed unlikely. Market conditions have changed in 2019, so banks were more willing to negotiate on debt restructuring. As an added bonus, they are even willing to accept a conversion price of RM0.10 per M&G share! 3. There's a sizeable annual interest savings from this exercise, as well as a restructuring gain of RM24.1m. This puts M&G on the right path to return to profitability. Caveat: 10 years later, the total number of shares goes up by 1.5b shares! (Factor of 3) 28/11/2019 3:09 AM Albukhary Fleet utilisation rate increase, chartered rate increase, expected M&G to improve more quarter. Maybe it cannot turn into profit, but at least the losses will be reduced substantially. The debt restructuring plan in 2020 will reduce the interest expenses, and the high utilisation rate may allow company to written back the impairment loss that book into account earlier. 13/12/2019 9:58 AM zhm540 what a sad story for a company which at one time had RM 365 mill cash after sale of SILK highway... but going into wrong business afterward. 13/12/2019 11:01 AM Albukhary Monitor it closely... Too less volume, but can see got people collecting at 6.5-8sen level 19/12/2019 12:37 AM Albukhary EGM passed all the resolution. Once the restructuring plan done, hopefully M&G can sail up again. This would be the next PERDANA. 02/01/2020 10:18 AM Albukhary Dont get scare by its losses, the losses is mainly due to:- 1) Depreciation 2) Finance interest 3) Schedule docking 4) New ship yet to deploy After restructuring, the interest will be lower. After new ship deployed, revenue will be increase to cover its depreciation. The cash flow is positive, very good sign for a turnaround company. 02/01/2020 10:20 AM maelxpdc EBITDA RM31.2 MILLION, NCFO RM39.2 MILLION, WAITING FOR PPL TO GORENG ONLY 06/01/2020 10:06 AM Albukhary If ALAM can move, impossible M&G cannot move. The only problem of M&G is 99% investor in the market don't even know it is a O&G company. In fact, M&G subsidiary (Jase Merin) is one of the largest fleet player in Malaysia. Its fleet size can fight with Alam, Perdana, Icon, Tas Offshore....etc. The only problem is it high interest.. but after this round of debt restructuring, M&G now can move faster d 06/01/2020 11:00 AM perangbrown Marine & General Bhd shareholders have today approved its debt-to-equity scheme to restructure RM200 million of its RM923.2 million debts owed by its subsidiaries. Marine & General's 70 per cent-owned unit Jasa Merin (Malaysia) Sdn Bhd (JMM), and two other units namely JM Global 3 (Labuan) PLC (JMG 3) and JM Global 4 (Labuan) PLC (JMG 4), have agreed with Affin Bank Bhd, Maybank Islamic Bank Bhd and Bank Pembangunan Malaysia Bhd to restructure the outstanding facilities by JMM and its subsidiaries. 15/01/2020 2:51 PM xox9989 Datasonic rises 3.38% to three-year high TheEdge Thu, Jan 02, 2020 02:26pm - 1 week ago KUALA LUMPUR (Jan 2): Shares of ICT solutions provider Datasonic Group Bhd rose as much as 3.38% this morning, reaching its highest level since October 2016. At the noon break, Datasonic was up 1 sen or 0.68% at RM1.49, valuing it at RM2.01 billion. In the last six months, the stock has more than doubled from 66 sen on July 2, 2019. On Tuesday, its managing director Datuk Abu Hanifah Noordin ceased to be a substantial shareholder after selling off his remaining 4.96% stake in the group. Datasonic's bourse filings showed Abu Hanifah had sold his remaining 66.92 million shares in the group via a direct business transaction to Datuk Razali Mohd Yusof, a director with Marine & General Bhd. Since early December, Abu Hanifah has been observed to be disposing of his shares in Datasonic, including through his vehicle Gerbang Subur Sdn Bhd. Prior to this, Abu Hanifah was the single largest shareholder of the company. 15/01/2020 10:42 PM xox9989 Dsonic share price break new high due to M&G director Datuk Razali become substantial shareholder. Will M&G stock also goreng up ? 15/01/2020 10:45 PM Albukhary I like stock where turn from loss to profit. Once the Debt Restructuring Scheme completed, sure this counter will fly. TP: 20 sen 16/01/2020 6:52 PM Albukhary Old News.... KUALA LUMPUR (Oct 2): Marine & General Bhd (M&G) has bagged a contract by Petronas Carigali Sdn Bhd for the provision of a unit of anchor handling tug and supply vessel for the petroleum arrangement contractors (PACs) production operations. M&G said the contract, received by Jasa Merin (Malaysia) Sdn Bhd, commenced on Sept 16 and has a duration of 709 days, with an option to extend the contract for a one-plus-one-year term. “The contract and option, estimated to have a value of approximately RM17 million for the primary term, is expected to contribute positively to the earnings of M&G for the financial period ending April 30, 2020 and beyond,” it said in a filing with Bursa Malaysia. 18/01/2020 3:19 PM Albukhary Old News... KUALA LUMPUR: MARINE & GENERAL BHD shareholders approved its proposed debt restructuring, recapitalisation and funding of its main operating subsidiary, Jasa Merin (Malaysia) Sdn Bhd (JMM) and its affected subsidiaries. In a statement issued after the EGM on Tuesday, the company said the shareholders approved the proposed issuance of 1.5 billion new ordinary shares in M&G at the issue price of 10 sen per share amounting to RM150mil. This was upon the surrender of 150 million irredeemable preference shares of RM1 each in JMM. The company also received the go-ahead to subscribe up to 150 million new cumulative non-convertible redeemable preference shares (CN-RPS) in JMM for RM150mil. To recap, JMM and its subsidiaries had on Nov 27 this year entered into agreements to restructure their outstanding facilities to their banks totaling RM923.2mil. The restructuring entailed an up-front cash payment of RM50mil to the banks; settlement of part of the outstanding debt amounting to RM150mil via the proposed issuance of JMM irredeemable preference shares; and granting to JMM and its affected subsidiaries additional time to settle the balance outstanding debt of RM723.2mil via a term financing. Upon completion of the up-front cash payment to the banks and the proposed issuance of JMM irredeemable preference shares, RM200mil of the JMM Group’s outstanding debt shall be fully and irrevocably settled. Marine & General said the RM723.20mil term financing would be settled in accordance with the terms and conditions agreed upon. “Upon the issuance of the JMM irredeemable preference shares, the indebtedness of the JMM Group is reduced by RM150mil. This will result in interest savings of approximately RM7.65mil per annum based on the effective interest rate of the term financing of 5.1% per annum. Furthermore, the exchange of the JMM irredeemable preference shares into new Marine & General shares will allow the group to preserve its cash position, as part of the debt owed by the JMM Group are to be settled via the exchange of new Marine & General shares and not cash. Upon the completion of the proposals and full exchange of the JMM irredeemable preference shares, Marine & General's gearing level would be reduced from the current level of 10.9 times (based on audited figures as at April 30,2019) to 3.08 times. Its executive chairman, Datuk Mohd Azlan Hashim said the company was pleased with the outcome of the EGM. “It was a good turnout and the company got a good opportunity to explain the need to undertake the proposals presented for consideration. The company is pleased with the positive response from shareholders to the briefing provided, ” he said. TAGS / KEYWORDS: 18/01/2020 3:20 PM Albukhary PETALING JAYA: Datuk Razali Mohd Yusof, who emerged as a key shareholder in Datasonic Group Bhd last month, has upped his stake in the technology firm. Razali’s vehicle, Demi Mekar Sdn Bhd now has a 6.45% stake in the group after acquiring an earlier 3.9% stake on Dec 18,2019. Datasonic, in a filing to the stock exchange, stated that Demi Mekar had acquired 87,162,000 shares on Jan 2,2020. Razali, who was recently appointed as Datasonic’s deputy president, also sits on the board of MARINE & GENERAL BHD, which is mainly involved in marine logistics in the upstream and downstream segments. With over 25 years of experience in the mining and oil and gas industry, Razali has held many roles ranging from developing businesses, managing critical projects, organisational development and providing advisory and consultancy services. It has been speculated that there could be a revamp in the group’s top management following the recent changes in its shareholding. The group’s long-serving managing director Datuk Abu Hanifah Noordin is expected to step down. A StarBizweek report, citing sources, said Razali or persons related to him will take over as the group’s new managing director. “Razali and his related parties are increasing their stake in the company to get a better control, ” the source was quoted as saying. On Dec 18, Abu Hanifah sold about 186.41 million shares or 48% of his total share units in Datasonic via direct business transactions. Despite the disposal, Abu Hanifah is the single largest shareholder with 202.67 million shares in Datasonic. This represented a direct and indirect shareholding of 10.17% and 4.84% respectively. 19/01/2020 2:48 PM Albukhary Datuk Razali seem like a very geng businessman, if he can take control of Datasonic, then he sure will turnaround M&G 19/01/2020 2:49 PM Albukhary The Board of Directors of Marine & General Bhd (“M&G”) is pleased to announce that its subsidiary, Jasa Merin (Malaysia) Sdn Bhd (“JMM”), received a work order award for the Provision of One (1) Unit of Anchor Handling Tug and Supply Vessel (“Contract”) for PETRONAS Carigali Sdn Bhd on 27 December 2019. JMM received the approval to release the announcement regarding the award on 21 January 2020. 22/01/2020 12:54 AM Albukhary New contract secured from PETRONAS. Once again M&G proof its capability. 22/01/2020 1:19 AM Albukhary Don't worry, M&G ship utilization is higher this quarter. Revenue sure will be higher. 22/01/2020 6:56 PM seng0326 Keep collecting... Oil and gas rise again when the over react on virua gone.. Finger cross 28/01/2020 8:15 PM  |
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