KUALA LUMPUR (Dec 26): Marine & General Bhd through its wholly-owned subsidiary TKH Marine (L) Ltd has disposed of a vessel, JM Sutera 7, to Narsimhaa Shipping Inc, Liberia, for a cash consideration of US$5.8 million (RM27.2 million).

In a bourse filing on Tuesday, the offshore marine support services provider said that the disposal of the vessel, acquired in 2018, was reached on a willing buyer and willing seller basis, and will enable the group to realise its original investment in the vessel.

The proceeds from the disposal will allow the group to reinvest in revitalising its fleet, thereby enhancing its ability to better serve customers, it said.

The group added that the disposal will not have any effect on the issued and paid-up capital and shareholdings of its substantial shareholders, and instead, the gain will contribute positively to the group's earnings, net assets, and gearing.

Marine & General's net profit for the second quarter ended Oct 31, 2023 (2QFY2024) fell 50.7% to RM8.22 million from RM16.67 million a year ago, despite higher revenue, mainly due to a non-recurring depreciation adjustment made in the previous year, following the extension of the useful life of its offshore support vessels (OSVs) from 15 to 20 years.

Quarterly revenue jumped 11.9% to RM91.83 million from RM82.1 million for 2QFY2023, attributed to higher fleet utilisation and charter rates for both OSVs and tankers, in line with the continued increase in oil drilling activities and the general economic recovery in the region.

For the six-month period ended Oct 31, 2023 (1HFY2024), the group's net profit recorded a marginal decrease of 0.6% to RM15.63 million from RM15.72 million for 1HFY2023, while revenue saw an increase of 12.1% to RM176.46 million from RM157.42 million previously.

Shares in Marine & General settled 1.5 sen or 7.32% higher at 22 sen on Tuesday, giving the group a market capitalisation of RM155.46 million. Since the beginning of the year, the stock has risen 109.52%.

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