Malaysia’s maritime sector is a dynamic space, constantly navigating global economic currents and local industry demands. Today, we’re diving into the latest financial report from Marine & General Berhad (M&G), a key player listed on Bursa Malaysia, as they unveil their results for the fourth quarter and full financial year ended 30 April 2025.
This report presents a mixed yet intriguing picture. While M&G demonstrated resilient revenue growth, particularly in the final quarter, its profit before taxation experienced a notable decline. However, a closer look reveals strategic adjustments and a significant improvement in the company’s overall financial health, highlighted by a substantial jump in net assets per share. Let’s unwrap the details and see what this means for the company’s trajectory.
Core Performance Highlights: A Closer Look at the Numbers
M&G’s financial performance for the quarter and the full financial year showcases both strengths and areas of challenge. We’ll compare the latest quarter’s performance against the corresponding period last year, and then examine the full-year figures.
Fourth Quarter (Q4 2025) Performance Snapshot
For the three months ending 30 April 2025, M&G saw a healthy increase in revenue, yet a significant dip in profit before taxation. This was largely influenced by a lower reversal of vessel impairment losses compared to the previous year, a technical accounting adjustment rather than a decline in operational efficiency.
Current Quarter (Q4 2025)
Revenue: RM93,813k
Profit Before Taxation (PBT): RM9,406k
Profit After Taxation (PAT): RM24,493k
PAT Attributable to Owners of Parent: RM17,612k
Basic Profit Per Share: 0.79 sen
Same Period Last Year (Q4 2024)
Revenue: RM83,158k
Profit Before Taxation (PBT): RM26,746k
Profit After Taxation (PAT): RM26,642k
PAT Attributable to Owners of Parent: RM18,121k
Basic Profit Per Share: 0.81 sen
While quarterly revenue increased by 12.8%, the profit before taxation decreased by 64.8%. This seemingly stark contrast is primarily due to a lower reversal of vessel impairment recorded in the current quarter, which significantly impacted the PBT. However, the Group’s Profit After Taxation (PAT) was bolstered by a substantial recognition of deferred tax assets, particularly from the Upstream Division.
Full Financial Year (FY2025) Performance Overview
Looking at the full financial year ended 30 April 2025, M&G demonstrated modest revenue growth, with strategic financial management helping to manage overall costs.
| Metric | FY2025 (RM’000) | FY2024 (RM’000) | Change (%) |
|---|---|---|---|
| Revenue | 352,226 | 348,019 | +1.2% |
| Profit Before Taxation (PBT) | 52,610 | 68,257 | -22.9% |
| Profit After Taxation (PAT) | 65,860 | 67,763 | -2.8% |
| PAT Attributable to Owners of Parent | 44,121 | 47,035 | -6.2% |
| Basic Profit Per Share | 1.98 sen | 2.11 sen |
For the full year, revenue saw a marginal increase of 1.2%. The PBT declined by 22.9%, again largely attributable to a lower net reversal of vessel impairment losses compared to the prior year. Despite this, M&G managed to reduce its finance costs, which partially offset the impact. The full-year PAT also benefited from the recognition of deferred tax assets.
Divisional Performance Deep Dive
M&G operates primarily through two key divisions: Marine Logistics – Upstream and Marine Logistics – Downstream.
Marine Logistics – Upstream Division
This division remains the backbone of M&G’s revenue, contributing a significant 81% to the Group’s total revenue for both the quarter and the full year.
- Quarterly Review: Revenue surged by 16.3% to RM76.9 million, partly due to a one-off adjustment to re-gross third-party vessel charter revenue. However, PBT plunged by 98.5% to RM0.4 million, mainly due to lower reversal of vessel impairment and higher dry-docking amortisation. Profit after taxation, however, was positively impacted by the recognition of deferred tax assets, reaching RM18 million. Fleet utilisation stood at 63%.
- Year-to-Date Review: Full-year revenue for Upstream grew by 7.0% to RM284.4 million, driven by improved charter rates and third-party vessel management activities, despite lower vessel utilisation (70% vs 78% last year). PBT decreased by 25.5% to RM47.8 million for similar reasons as the quarterly performance. PAT saw a modest increase of 2.5% to RM65.4 million due to the deferred tax asset recognition.
Marine Logistics – Downstream Division
The Downstream Division, contributing 19% to the Group’s revenue, has been undergoing a strategic rationalisation of its fleet, disposing of older, less efficient vessels.
- Quarterly Review: Revenue was marginally lower at RM16.9 million (-0.7%). However, PBT saw a remarkable increase to RM10.2 million (compared to RM0.1 million last year), primarily due to lower direct expenses following vessel disposals and cessation of third-party vessel charter hire. Fleet utilisation significantly improved to 93% from 75% last year, reflecting the benefits of rationalisation. PAT for the quarter was RM7.6 million.
- Year-to-Date Review: Full-year revenue declined by 17.4% to RM67.8 million, consistent with operating fewer vessels. Despite this, PBT increased by 17.3% to RM9.8 million, driven by significant reductions in direct expenses, vessel depreciation, and dry-docking amortisation. PAT, however, was lower at RM5.4 million due to the recognition of deferred tax liabilities and adjustments from prior year provisions. Fleet utilisation for the year was 80%.
Assessing Financial Health: Balance Sheet and Cash Flow
Beyond the income statement, M&G’s balance sheet and cash flow statements offer crucial insights into its financial strength and liquidity.
Balance Sheet at a Glance (as at 30 April)
- Total Assets: RM856,648k (FY2025) vs RM857,262k (FY2024) – broadly stable.
- Total Equity: RM208,351k (FY2025) vs RM162,239k (FY2024) – a significant improvement of 28.4%, largely driven by the increase in accumulated profits.
- Total Liabilities: RM648,297k (FY2025) vs RM695,023k (FY2024) – a healthy reduction of 6.7%. This reduction is primarily due to lower loans and borrowings.
- Net Assets Per Share: An impressive 23.09 sen (FY2025) compared to 18.50 sen (FY2024), reflecting the strengthened equity position.
- Loans and Borrowings: Decreased to RM558,456k (FY2025) from RM621,941k (FY2024), indicating continued debt repayment efforts.
Cash Flow Performance (for the Financial Year Ended 30 April)
- Net Cash Generated from Operating Activities: Increased to RM126,400k (FY2025) from RM115,090k (FY2024), demonstrating strong operational cash generation.
- Net Cash Used in Investing Activities: Shifted to an outflow of RM52,753k (FY2025) from an inflow of RM29,777k (FY2024). This change is mainly due to increased purchases of property, vessels, and equipment this year, coupled with no significant proceeds from disposals, unlike the previous year.
- Net Cash Used in Financing Activities: Reduced to an outflow of RM96,405k (FY2025) from RM101,889k (FY2024), reflecting lower repayments of borrowings and finance costs.
- Cash and Cash Equivalents: Decreased to RM44,643k (FY2025) from RM67,401k (FY2024). While there was a decrease, the robust operating cash flow indicates the company’s ability to generate cash from its core business.
Overall, the balance sheet shows a stronger equity base and reduced liabilities, indicating improved financial stability. The operating cash flow remains robust, supporting the company’s ongoing operations and debt reduction efforts.
Risks and Future Prospects
M&G operates in an environment shaped by both domestic and global factors. The Board’s outlook for the coming financial year is one of cautious optimism, acknowledging both opportunities and challenges.
Economic Landscape: Malaysia’s economic fundamentals are stable, supported by healthy private consumption and investment. However, external uncertainties such as geopolitical tensions and the potential for a global economic slowdown, alongside domestic fiscal constraints, are increasing risks to overall business conditions. M&G, like many companies, must navigate these broader macro-economic headwinds.
Divisional Outlook:
- Upstream Division: M&G anticipates a marginal decline in offshore support vessel (OSV) requirements due to expected delays in certain new projects. Nevertheless, the demand for domestic vessels is expected to remain steady, supported by an ongoing shortage in the local market. The company continues to monitor regulatory developments in the oil and gas sector for potential operational implications.
- Downstream Division: This division expects steady operational levels, underpinned by consistent demand for Malaysian-flagged tankers. Following the strategic disposal of three vessels over the last two years, the division has streamlined its fleet capacity. Any future expansion will be carefully assessed based on prevailing market conditions and operational needs.
The Board maintains a neutral outlook for the next financial year, with operational decisions being guided by market developments and evolving economic conditions. This pragmatic approach underscores their commitment to sustainable growth amidst a dynamic environment.
Summary and Investment Recommendations
Marine & General Berhad’s latest financial report paints a picture of a company actively adapting to market realities. While the fourth quarter saw a technical dip in profit before taxation due to accounting adjustments related to vessel impairments, the underlying revenue growth and strategic fleet rationalisation efforts in the Downstream division are positive signs. The significant improvement in the balance sheet, particularly the increase in total equity and reduction in total liabilities and borrowings, highlights a strengthening financial foundation.
The company’s robust operating cash flow provides a solid base for its operations, even as it navigates a more challenging investing landscape with increased capital expenditure. M&G’s focus on managing its fleet efficiently and monitoring market demand positions it to weather external uncertainties.
- External macroeconomic uncertainties, including geopolitical tensions and a potential global economic slowdown, could impact overall business conditions.
- Domestic fiscal constraints may also influence the operating environment.
- The Upstream Division faces potential delays in greenfield projects, which could affect OSV demand.
- Maintaining optimal
