MISC 1Q18 net profit falls to RM310.60 mln
KUALA LUMPUR: MISC Bhd’s net profit fell to RM310.60 million in the first quarter ended Mar 31, 2018 (1Q18) from RM676.20 million recorded in the previous corresponding quarter in 2017.
Revenue also decreased 32.3 per cent during the period under review to RM2.02 billion from 1Q17’s RM2.98 billion.
In a filing with Bursa Malaysia yesterday, MISC said the fall in revenue was mainly due to lower freight rates in the petroleum segment.
“The petroleum segment saw an operating loss of RM39.2 million compared with the last corresponding quarter’s profit of RM82.6 million,” it said, adding petroleum tanker earnings were considerably weaker in 1Q18 than in previous years, despite the winter season.
Lower tonnage demand on the back of the Organisation of the Petroleum Exporting Countries led production cuts, as well as, tonnage oversupply also depressed the market considerably.
“The petroleum shipping segment is expected to face a challenging 2018 and performance for the year is expected to be weaker than 2017,” it said.
Moving forward, the group believed a more stable and higher oil price environment in 2018 would pave the way for a gradual recovery in global offshore oil and gas investments.
“The expected recovery in the number of projects approved represent opportunities for the group, both locally and internationally, including opportunities in West Africa, Middle East and the Americas. — Bernama