Marine & General back in black in Q2

KUALA LUMPUR: Marine & General Bhd, formerly known as Silk Holdings Bhd, has returned to the black after it recorded a net profit of RM337.23 million for the second quarter ended June from a net loss of RM16.93 million in the same period a year ago.

This is mainly due to the disposal of its entire shareholding in Sistem Lingkaran Lebuhraya Kajang Sdn Bhd for RM390 million.

Its marine upstream division’s revenue performance of RM23.6 million for the quarter is 37 per cent lower compared with its performance in the previous corresponding quarter, reflecting the challenging operating environment prevalent for providers of offshore support vessels (OSVs).

The comparatively lower revenue for the quarter and the impairment charges incurred translated into a loss before tax of RM81.1 million, an increase from the RM18.5 million recorded in the previous corresponding quarter.

Its downstream division, which began in June last year, recorded revenue of RM14.2 million for the quarter and a pre-tax loss of RM600,000.

With all three of its vessels chartered out, the division recorded an average utilisation rate of 88 per cent for the quarter.

Executive chairman Datuk Azlan Mohd Hashim said providers of offshore support services would likely see an improvement in their performance for the second half of the year.

“Based on the increasing trend of tenders being called out, prospects for the upstream division for the remainder of the year, given its good historical track record of delivery, appear to be better when compared with the beginning of the year.

“With respect to the downstream division, demand for liquid bulk carriers remains fairly robust during the first two quarters of the year, at 80 and 88 per cent, respectively, reflecting the demand for clean petroleum products. This is expected to remain robust until the end of the year,” he said.

“All three vessels are expected to remain on-contract for the remainder of the year as there are no scheduled dry-dockings for this year,” he added.

... the prospects for the upstream division for the remainder of the year, given its good historical track record of being able to deliver, appear to be better when compared to the beginning of the year. DATUK AZLAN MOHD HASHIM Marine & General Bhd executive chairman