MISC FY18 net profit falls to RM1.31 bln

KUALALUMPUR:MISCBhd's net profit fell to RM1.31 billion in the financial year ended Dec 31, 2018 (FY18) compared with RM1.98 billion recorded in the previous corresponding period.

Revenue dropped 12.8 per cent to RM8.78 billion from RM10.07 billion previously, due to lower revenue recorded in the group's business segments, including liquefied natural gas (LNG), petroleum and offshore.

InafilingwithBursaMalaysia yesterday, MISC said the LNG segment's revenue was 18 per cent lower at RM2.35 billion compared with RM2.86 billion in the previous year.

“This was mainly due to the reduced number of operating vessels following the expiry of a charter contract in June 2017 and the suspension of a charter contract in 2018, coupled with a lower charter rate following the contract renewal of an LNG carrier in October 2017,” it said.

Meanwhile, the petroleum segment registered revenue of RM4.31 billion or 4.4 per cent lower than the corresponding year's revenue of RM4.51 billion that was attributed to the strengthening of the ringgit against the US dollar.

“Offshore's revenue decreased 36.9 per cent to RM1.19 billion from RM1.89 billion as the corresponding year's revenue included recognition of a one-time gain from a favourable adjudication decision on the Gumusut-Kakap Semi-Floating Production System (L) Ltd variation works and lower construction revenue for floating, storage and offloading Benchamas 2 in the current year from different phase of project construction,” MISC said.

Moving forward, it said 2019 was expected to be another challenging year for petroleum tanker markets but not for the LNG segment, which was expected to continue benefiting from the market strength seen in 2018.

“For the offshore segment, it will continue to be supported by healthy activities in oil and gas exploration and production.

“An increasing number of floating production system contract awards are forthcoming in the next few years and MISC's offshore business unit will be actively pursuing these opportunities.

“The two new assets added in 2018 will provide a source of income growth and support the financial performance for the unit in 2019,” MISC added. — Bernama