M&G Sells Vessel To Thai Company For RM31.54 Mln

KUALA LUMPUR, Feb 20 (Bernama) -- Marine & General Bhd’s (M&G) an indirect wholly owned subsidiary, M&G Tankers Sdn Bhd, has completed the disposal of its vessel JM Sutera 6 for US$7.10 million (RM31.54 million) to Thailand-based company Lion Great Energy Co Ltd.

M&G said in a filing with Bursa Malaysia today that the cost of the vessel was US$7.72 million, while the net carrying value as of the disposal date was US$5.88 million.

“The vessel was last valued by an independent vessel valuer in August 2024 at US$9.45 million.

“However, the final disposal price of JM Sutera 6 of US$7.10 million arrived on a willing buyer-willing seller basis after due consideration of actual market demand for the vessel as well as the group’s strategic initiative to reduce the average age of its tankers,” the company said.

M&G added that the disposal aligns with the company’s fleet optimisation strategy, aiming to dispose of older vessels and reduce the average age of its tankers, thereby lowering maintenance costs that increase as vessels age.

“The disposal reduces the overall average age of the Downstream Division owned tanker fleet to 11.1 years down from 11.8 years prior to the disposal.

“The disposal also reduces the owned fleet size of the Downstream Division to four vessels, consisting of four chemical tankers,” it added.

Moving forward, the Downstream Division will continue to evaluate options to refresh its tanker fleet, taking into account new environmental considerations and the requirements of charterers.

JM Sutera 6, which was used as additional security for the debt restructuring of Jasa Merin (M) Sdn Bhd (JMM), was sold for net proceeds of US$6.96 million (RM30.93 million), which will be utilised to reduce the debts owed.

-- BERNAMA