KUALA LUMPUR: Marine & General Bhd maintains a cautiously optimistic outlook for its upstream division, underpinned by long-term contracts for its 60-metre anchor handling tug supply (AHTS) vessels.
The outlook is also supported by an expected gradual recovery in Malaysia's exploration and development activities between 2026 and 2028.
Following its 29th annual general meeting (AGM) held earlier today, the company said the ageing regional offshore support vessel (OSV) fleet.
This was due to limited investment in new vessels during the prolonged downturn in offshore services, is also expected to support a relatively stable market balance.
"Nevertheless, near-term conditions remain competitive, as normalisation in domestic charter rates and more competitive tendering may affect margins," it said in a statement.
The division also faces industry-wide challenges from the energy transition, rising drilling and operating costs, and increasing environmental, social and governance compliance requirements.
"Our focus will continue to be on operational reliability, cost management, vessel availability and fleet optimisation to support charter performance and resilience."
For the downstream division, the company said the Malaysian tanker market is expected to remain stable in the near term, supported by consistent downstream activity and refined
product distribution.
Overall, the group maintains a neutral outlook for the next financial year.
"This reflects the support from long-term contracts for its 60-metre AHTS vessels and the expected gradual increase in exploration and development activities in Malaysia, balanced against prevailing market conditions, global economic uncertainties and geopolitical risks.
"The group will continue to manage its operations and capital resources prudently, with operational decisions guided by market developments and economic conditions."
Eight ordinary resolutions were presented for consideration by the company's shareholders at the AGM. All resolutions were duly passed by the shareholders.
© New Straits Times Press (M) Bhd