MISC POSTS RM1.98B NET PROFIT
23.26pc decline due to impairment loss on ships, property and other investments
MISC Bhd’s net profit in the financial year ended December 31 last year plunged 23.26 per cent to RM1.98 billion from RM2.58 billion a year ago due to impairment loss on ships, property, plants and equipment, offshore floating assets and other investments.
In a filing with Bursa Malaysia yesterday, MISC’s revenue last year increased 4.58 per cent to RM10.04 billion from RM9.6 bil- lion in 2016, attributed to higher revenue contributions from its liquefied natural gas (LNG) and offshore businesses.
Its fourth-quarter net profit dropped 87.12 per cent to RM68.2 million from RM529.8 million, while revenue decreased 3.57 per cent to RM2.43 billion from RM2.52 billion a year ago.
Moving forward, MISC said the oversupply of tonnage and cuts in global oil production by the Organisation of the Petroleum Exporting Countries would continue to weigh on the petroleum shipping segment this year.
“However, a smaller order book for tankers and robust oil demand projections amid declining global crude inventory will help improve tanker supply-demand balance,” it said.
MISC said it would continue to rely on its present portfolio of long-term time charters to provide it stable profit and cash flow during the year.