KUALA LUMPUR, Aug 24 — MISC Bhd’s net profit for the second quarter ended June 30, 2023 (2Q 2023), surged to RM452.90 million against a net loss of RM19.10 million in the same period a year earlier.
Revenue for 2Q 2023 also improved 10.5 per cent to RM3.55 billion from RM3.21 billion previously, supported by the positive performance in gas assets and solutions; petroleum and product shipping as well as marine and heavy engineering segments, said the provider of energy-related maritime solutions and services in a filing with Bursa Malaysia today.
The group’s operating profit of RM531.3 million stood at RM70.4 million or 15.3 per cent higher than the corresponding quarter’s profit of RM460.9 million.
MISC said the gas assets and solutions segment’s revenue rose 1.2 per cent to RM771.8 million in 2Q 2023 compared to RM762.5 million previously, mainly due to translational impact from the weakening of the ringgit against the US dollar in the current quarter.
Meanwhile, its petroleum and product shipping segment’s revenue during the current quarter was 7.6 per cent higher, at RM1.22 billion, from RM1.13 billion previously, mainly due to higher freight rates achieved.
Its marine and heavy engineering segment’s revenue was more than 100 per cent higher, at RM1.06 billion, in 2Q 2023 from RM400.6 million previously, mainly due to higher revenue from on-going heavy engineering projects.
However, the offshore business segment’s revenue fell by 47.6 per cent to RM466.7 million during the quarter from RM890.4 million previously, mainly due to lower recognition of revenue from the conversion of a floating, production, storage and offloading unit (FPSO) following lower project progress in the current quarter.
MISC said that in the near term, prospects remain positive due to the rebound of liquefied natural gas (LNG) demand prompted by lower prices, restocking for winter requirements and depletion of inventories in the summer given frequent heat waves.
“Premised on this, the gas assets and solutions segment will continue to pursue available growth opportunities while its operating income continues to remain solid, supported by its current portfolio of long-term charters,” it added.
MISC said for the marine and heavy engineering segment, continuing high oil prices are expected to support increased oil and gas capital expenditure (capex), and increasing significance of environmental, social and governance (ESG) will create multiple business opportunities in renewable energy for the heavy engineering sub-segment.
“However, ongoing project execution remains challenging due to raw material price escalation and global supply chain disruption which resulted in additional costs and schedule impact. Consequently, the recovery will be pursued from clients,” it said.
Meanwhile, the board of directors has approved a second tax exempt dividend of 10.0 sen per share in respect of the financial year 2023 amounting to RM446.4 million.
The proposed dividend will be paid on September 21, 2023 to shareholders registered at the close of business on September 12, 2023. — Bernama
