Thursday, February 2, 2023
HomeFinance & EconomyMISC 2Q net profit jumps to RM538.8mil


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

MISC 2Q net profit jumps to RM538.8mil

MISC Bhd’s net earnings jumped 79.9% to RM538.8mil in the second quarter ended June 30, 2021, from RM299.5mil in the previous corresponding quarter, owing to improvements in its marine engineering, shipping and offshore business segments and lower forex losses.

Revenue for the quarter was RM2.35bil, 7.7% higher than in the same quarter last year while operating profit jumped 19.9% higher year-on-year (y-o-y) to RM627mil.

The board of directors declared a dividend of seven sen per share, which brought year-to-date payout to 14 sen per share.

In a filing with Bursa Malaysia, MISC said its offshore business division’s revenue more than doubled to RM336.3mil from the previous corresponding quarter due mainly to the recognition of revenue from conversion of a floating, production, storage and offloading (FPSO) in the quarter.

This resulted in the segment operating profit rising 39.1% to RM52.5mil.

In the marine and heavy engineering segment, the group recorded a 94.9% y-o-y jump in revenue to RM302.5mil, owing to the negative impact of the yard shutdown during the movement control order in the comparative quarter.

The segment’s operating loss narrowed to RM26.3mil from RM100.2mil due to the additional cost provision associated with the Covid pandemic recognised in the comparative quarter.

In the petroleum and product shipping segment, operating profit was 5.1% higher y-o-y to RM212mil due to a one-off compensation for a contract renegotiation, which offset the impact of lower freight rates and lower earning days.

Meanwhile, operating profit in the LNG asset solutions business dropped 16.7% to RM58.9mil mainly due to higher vessel operating costs and impairment on receivables.

In the others segment, operating loss narrowed to RM39.1mil versus 2QFY20’s operating loss of RM65.5mil due to lower net foreign exchange loss.

The group also had a lower impairment on non-current assets of RM42mil compared to RM306mil in the corresponding quarter, the latter of which was recorded after the completion of the group’s assessment on the impact of the Covid pandemic and depressed oil price environment.

Moving forward, the group said its offshore business segment is focusing on the execution of the new FPSO project in hand, and will monitor the market for the next major project.

It is also cautiously optimistic over the marine and heavy engineering segment despite the oil and gas industry showing signs of recovery.

“The Marine business prospects are expected to continue to be impacted by the nation’s prevailing stringent border restrictions as foreign clients continue to opt for shipyards in countries with lower COVID-19 cases and more relaxed border restrictions.

“Meanwhile, the segment remains committed to replenishing its order book and optimising its operating costs along with ensuring safe execution and delivery of ongoing projects on time and on budget,” said MISC.


Related Posts


Finance & Economy
Shipping News

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Hapag-Lloyd achieves extraordinarily strong result in its anniversary year 2022

On the basis of preliminary and unaudited figures, Hapag-Lloyd has concluded the 2022 financial year – in which it celebrated its 175th anniversary –...

Bahri sees profits soar in 2022

Saudi Arabia’s Bahri has seen its profits soar by over 400% in 2022 following a boom in tanker rates, boosting the shipping giant’s oil...

Euronav Files Second Arbitration Against Frontline

Euronav NV hereby informs its shareholders that on 28 January 2023 it has filed an application request for arbitration on the merits in relation...

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

Cyprus shipping making waves – report

Cyprus shipping, the steady driver of the economy, is sailing for better times, having...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...