KUALA LUMPUR, Nov 18 — MISC Bhd posted a higher net profit of RM401 million for its third quarter ended Sept 30, 2021, from RM258.30 million, mainly due to the contribution from its offshore business and the liquified natural gas (LNG) asset solutions segments.

Revenue jumped 30.7 per cent to RM2.69 billion, primarily contributed by higher revenue from the offshore business segment following the recognition of revenue from the conversion of a floating, production, storage and offloading (FPSO), it said in a filing with Bursa Malaysia.

Additionally, higher-earning days from the deliveries of six very large ethane carriers since the fourth quarter of 2020 have contributed to an increase in the LNG asset solutions segment’s revenue.

It reported basic earnings per share of nine sen compared with the 5.8 sen previously.

MISC has approved a third tax-exempt dividend of 7.0 sen per share in respect of the financial year 2021 amounting to RM312.5 million.

The proposed dividend will be paid on December 14, 2021 to shareholders registered at the close of business on December 3, 2021.

In a statement by the company today, president and group chief executive officer Datuk Yee Yang Chien said in the LNG shipping market, shipping rates are expected to strengthen towards year-end on account of high winter season demand in Europe and Asia.

“Despite surging gas prices, Asian LNG demand is likely to remain robust as China is facing power outrages in its northern regions with its policy of curbing coal consumption leading to gas shortages.

“Notwithstanding the market volatility, the operating income of the LNG Asset Solutions segment is expected to remain fairly stable, underwritten by its portfolio of long-term charters,” he said.

Yee also said that the prolonged impacts of the pandemic and Organisation of the Petroleum Exporting Countries and its allies (Opec+) production cuts continue to hurt the petroleum shipping market, especially in the crude sector.

In the short term, the tanker market is expected to see some modest improvement towards winter, although risks to the market outlook remain.

Meanwhile, the medium-term prospects remain positive for the tanker market, with likely improvements focused towards the second half of 2022 whereby tanker demand is projected to return close to 2019 levels, driven by Opec+ phased supply increases and continued economic recovery.

MISC sees a promising outlook for the floating production systems sector with positive expectations for global growth and sturdy oil price, together with attractive returns for offshore developments and pipeline projects to be sanctioned.

“With continued uncertainty over the economic recovery coupled with high steel prices, the Marine and Heavy Engineering segment remains cautious on the prospects for the Heavy Engineering sub-segment during the remainder of the year.

“We are cautiously optimistic that these fundamentals will remain in the fourth quarter and into the year 2022 while we look forward to a strong finish to the financial year,” he said.

At 3.47pm today, shares of MISC rose 3 sen to RM6.92 with 280,400 shares transacted. — Bernama