Kuala Lumpur: Marine and General Bhd’s (M and G) subsidiary, M and G Tankers Sdn Bhd, has finalized the sale of its vessel, JM Sutera 6, to Lion Great Energy Co Ltd from Thailand for US$7.10 million (RM31.54 million).

According to BERNAMA News Agency, M and G reported in a Bursa Malaysia filing that the vessel was initially purchased for US$7.72 million, with a net carrying value of US$5.88 million at the time of sale. The vessel’s last valuation by an independent valuer in August 2024 was US$9.45 million. However, the disposal price of US$7.10 million was agreed upon based on market demand and the company’s strategy to modernize its fleet by reducing the average age of its tankers.

The company stated that this sale is part of its fleet optimization strategy aimed at disposing of older vessels to lower maintenance costs. With this disposal, the average age of the Downstream Division’s tanker fleet has decreased to 11.1 years from 11.8 years. The division’s owned fleet now comprises four chemical tankers.

Looking ahead, the Downstream Division intends to explore opportunities to renew its tanker fleet, considering environmental factors and charterer requirements. The sale of JM Sutera 6, which served as additional security for the debt restructuring of Jasa Merin (M) Sdn Bhd, generated net proceeds of US$6.96 million (RM30.93 million) to help reduce existing debts.