MISC Q2 profit dips 42.28pc on lower earnings
KUALA LUMPUR: MISC Bhd’s net profit declined 42.28 per cent year-on-year to RM321.2 million in the second quarter ended June 30, from RM556.5 million a year ago, on lower earnings across all divisions.
MISC said this was due to a reduced number of operating vessels and a lower charter rate as well as lower foreign exchange gain.
The company said in a filing to Bursa Malaysia its revenue dropped seven per cent to RM2.14 billion from RM2.3 billion previously.
For the first-half of the year, net profit plummeted 48.78 per cent to RM631.80 million from RM1.23 billion, while revenue dropped 21.36 per cent to RM4.16 billion from RM5.29 billion.
MISC president and group chief executive officer Yee Yang Chien said the company would continue to leverage growth opportunities despite the volatile and challenging market conditions.
“We remain optimistic that our strong presence in the market will continue to sustain our development and provide the impetus to drive us forward,” he said in a statement.
MISC believed that the Organisation of the Petroleum Exporting Countries-led production cuts would begin to ease over the second half of this year.
“This development is expected to be positive for tanker markets as demand for crude tankers are likely to pick up and the very large crude carriers segment is expected to benefit the most, especially for the Arabian Gulf-Asia trade.”
MISC said rising oil consumption, higher United States exports and eroding inventories were also expected to support the recovery in freight rates in the medium to longer term.
It added that its present portfolio of long-term charters would provide stable income and cash flow to the group’s liquefied natural gas business segment.
“We believe the steady oil price recovery in recent months and renewed interest in growth opportunities have led to increase of activities in the offshore segment, especially for developments within the Atlantic Basin.”