MISC Q3 NET PROFIT SOARS TO RM680.5m
Higher contribution from LNG, petroleum and offshore business segments
MISC Bhd’s net profit multiplied to RM680.5 million in the third quarter ended September 30 this year from RM134.2 million a year ago, driven by higher earnings from its liquefied natural gas (LNG), petroleum and offshore divisions.
Group revenue rose one per cent to RM2.32 billion from RM2.29 billion a year ago, MISC said in its filing with Bursa Malaysia yesterday.
For the nine-month period, MISC said net profit had eased to RM1.91 billion from RM2.05 billion a year earlier. Revenue, however, edged up to RM7.6 billion from RM7.1 billion in the same period a year ago.
On the company’s prospects, 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 had also been exacerbated by the delivery of new tankers during the year. Nonetheless, the seasonal demand during peak winter months could end the year on a firmer note for the petroleum shipping sector.
“Amid difficult market conditions, the recent positive developments and accomplishments reflect our resilience in demonstrating excellent financial and operational performance, as well as our ability to consistently create value across the group and position ourselves well to leverage growth opportunities,” MISC president and group chief executive officer Yee Yang Chien said in a separate statement.
“We remain optimistic that our strong presence in the markets will continue to sustain our development and provide the impetus to drive us forward,” he added.
MISC said the higher revenue was mainly contributed by the lease commencement of three new LNG vessels which were delivered in October last year and January and August this year.
Offshore segment also contributed to the increase in revenue with the favourable adjudication decision on Gumusut-Kakap Semi-Floating Production System (L) Ltd’s variation works and construction revenue from the FSO Benchamas 2 that started construction in January.
On the 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.
Spot charter rates are, however, expected to pick up as countries start building up inventories to meet the winter heating demand.
The present portfolio of longterm charters in the group’s LNG shipping business will continue to support the financial performance of this segment.
“Although opportunities may be limited, the current long-term contracts in hand will support the performance of the group’s offshore business division,” said Yee.