KUALA LUMPUR, May 30 — MISC Bhd’s net profit surged to RM759.90 million in the first quarter ended March 31, 2024 (1Q FY2024), up from RM612.90 million in the same period last year, driven by higher revenue.

The shipping giant reported in a filing with Bursa Malaysia today that its revenue climbed to RM3.64 billion from RM3.08 billion.

The company also declared its first tax-exempt dividend of eight sen per share, amounting to RM357.1 million, payable on June 27, 2024.

MISC said revenue of its gas assets and solutions segment rose 2.6 per cent to RM775.3 million from RM755.9 million previously, primarily driven by the translational impact of the weakening ringgit against the US dollar in the current quarter.

"Operationally, the segment’s revenue this quarter was lower due to fewer earning days from contract expiries and vessel disposals,” it said.

In its petroleum and product shipping segment, revenue rose 12 per cent to RM1.36 billion in 1Q FY2024 from RM1.21 billion, driven by higher earning days following vessel deliveries.

The marine and heavy engineering segment saw revenue surge 98.4 per cent to RM984.5 million from RM496.2 million, attributed to increased revenue from ongoing heavy engineering projects and the marine sub-segment.

Looking ahead, MISC expects the liquefied natural gas (LNG) shipping market to remain positive, with spot rates anticipated to gradually improve in line with seasonal demand.

"Operating income for the gas assets and solutions segment is expected to remain stable, supported by its portfolio of long-term charters,” it said.

For the petroleum and product shipping segment, MISC plans to continue identifying opportunities, particularly in dual-fuel assets, and focus on building long-term secured income for business growth.

In the marine and heavy engineering segment, the group anticipates robust global upstream capex spending, driven by tighter global supply due to heightened geopolitical tensions and the Organisation of the Petroleum Exporting Countries plus’ (Opec+) supply restrictions. — Bernama