KUALA LUMPUR, Nov 13 — MISC Bhd, which saw its net profit dip by 22 per cent to RM266.10 million as compared with RM341 million due to losses in heavy engineering and petroleum segment remains upbeat on the outlook as it eyes for more successful tender.
For the quarter ended September 30, 2019, group revenue of RM2.14 billion was 3.7 per cent lower than the RM2.22 billion previously amid a one-time reimbursement cost on towing and installation of a project in the offshore segment recognised in the corresponding quarter, it said in a Bursa Malaysia filing.
“Revenue for heavy engineering segment also decreased resulting from post sail away projects and lower cost plus revenue following completion of the main contract in the current quarter. Petroleum segment recorded lower revenue due to the lower number of operating vessels in the current quarter.”
For the cumulative nine months, MISC’s net profit was higher at RM1.17 billion against RM972.8 million previously, while revenue stood at RM6.58 billion versus RM6.39 billion before in 2018.
On the outlook, MISC said freight rates are likely to remain robust in the fourth quarter.
“The Petroleum shipping segment will reap the benefits of the robust albeit volatile market and is expected to end the year on a firmer note,” group chief executive officer, Yee Yang Chien said.
Similarly, in the Liquefied Natural Gas (LNG) shipping segment, a surge in spot rates has raised the expectation that the ground is being laid for a robust winter market. Tonnage availability remains low and increased US liquefaction capacity is expected to drive spot rates further in the coming months.
Besides these, he said MISC is also pleased to see a lot of projects that were previously under consideration have now come to life especially in the recent months which bodes well to sustain the momentum of its healthy financial growth.
“We are hopeful of ending financial year 2019 on a high note with a few more projects secured, after our successful tender for the LNG tanker time charter contracts with SeaRiver Maritime (a wholly-owned subsidiary of Exxon Mobil Corporation) for 2 vessels for a period of 15 years.
MISC hopes to build on that momentum of growth from now into 2020,” Yee added.
It declared a third tax-exempt dividend of 7.0 sen per share in respect of the financial year 2019 amounting to RM312.5 million. It will be paid on December 10, 2019.
At lunch break, MISC shares were quoted at RM8.32, up three sen. — Bernama
