MISC’s nine months pre-tax profit slips 15 pct to RM1.96 billion
KUALA LUMPUR: Shipping firm, MISC Bhd, posted a lower pre-tax profit of RM1.961 billion for the nine months ended Sept 30, 2017, down 15.06 per cent compared with RM2.309 billion recorded in the same period last year.
Grouprevenueof RM7.603billion was, however, 7.4 per cent higher than the RM7.079 billion registered in the nine-months period ended 30 September 2016, it said in a filing to Bursa Malaysia.
For the third quarter, the company posted a higher pre-tax profit of RM706.2 million compared with RM154.6 million registered in the same quarter last year.
Revenue was also up at RM2.31 billion from RM2.29 billion, previously.
On outlook, MISC said petroleum shipping demand continued to be affected by global production cuts in response to high crude inventory levels and low oil prices.
“This has also been exacerbated by the delivery of new tankers during the year.
“Nonetheless, seasonal demand during peak winter months will end the year on a firmer note for the petroleum shipping sector,” MISC said.
On the Liquefied Natural Gas (LNG) shipping front, spot charter rates remained sluggish as a result of the tonnage oversupply situation led by higher vessel deliveries and older vessels coming off charter.
“However, spot charter rates are expected to pick up as countries start building up inventories to meet the winter heating demand,” it said.
The present portfolio of longterm charters in the group’s LNG shipping business would continue to support the financial performance of this segment, it added.
The shipping company said expectation of a more stable oil price environment would pave the way for a gradual recovery in investments in the global offshore exploration and production space, especially for developments within the Atlantic Basin.
“Although opportunities may be limited, the current long-term contracts in hand will support the financial performance of the group’s offshore business division,” MISC said.
Meanwhile, it said the heavy engineering business segment remained committed to managing costs, optimising its resources and improving operational efficiency to combat the challenging environment.
“Replenishment of order book from the marine segment and offshore services are progressing and remain a priority,” it said.
Although the segment has successfully secured several offshore fabrication projects during the period, the majority of the contribution would only be realised in 2018 and beyond, it added. — Bernama