KUALA LUMPUR: MISC Bhd posted lower earnings of RM1.98bil in the financial year ended Dec 31, 2017 due to the impairment loss of ships, property, plant and equipment, offshore floating asset and other investment totalling RM687.5mil.
The LNG shipper reported on Tuesday the earnings were down 23.2% from the RM2.58bil in FY16. The impairments in FY16 amounted to RM358.8mil.
Its revenue was higher by 4.6% at RM10bil compared with RM9.59bil. Its operating profit rose 10.2% to RM2.70bil from RM2.45bil.
The board of directors has approved a fourth tax exempt dividend of nine sen per share for FY17 amounting to RM401.6mil.
The proposed dividend will be paid on March 15 to shareholders registered at the close of business on Feb 28.
MISC said its LNG revenue rose 14.1% to RM2.83mil from RM2.48mil a year ago mainly from lease of two new vessels.
LNG operating profit however, slipped 4.7% to RM1.42bil mainly from recognition of compensation for early termination of time charter of contracts in the corresponding year.
Petroleum revenue fell 5.1% to RM4.51bil from RM4.75bil due to reduced earning days and lower freight rates.
Operating profit fell 85.7% to RM46.9mil from RM327mil mainly from lower revenue and higher bunker costs.
Offshore revenue rose to RM1.89bil from RM1.159bil mainly from consolidation of Gumusut-Kakap Semi-Floating Production System (L) Ltd (GKL) beginning May 13, 2016.
It also recorded higher revenue from GKL via variation works following favourable decision of the adjudication, construction revenue from floating, storage and offloading vessel (FSO) Benchamas 2 and the start of the lease of marginal marine production unit in Q4 FY2016.
Offshore operating profit rose to RM1.13bil from RM375.4mil mainly from higher revenue in the current year coupled with impairment of finance lease receivables made in the corresponding year.
Its heavy engineering revenue fell 19.5% to RM958.9mil from RM1.19bil due to completion of projects in its heavy engineering sub-segment while new secured projects are still at their early stages, and lower value of vessel repairs in its marine sub-segment.
Operating profit rose to RM15.3mil from RM13.1mil mainly from recognition of change orders and finalisation of completed projects in its heavy engineering sub-segment.
Others, eliminations and adjustments
Others segment operating profit of RM89.6mil was lower than operating profit of RM244.8mil in the corresponding year, mainly due to the inclusion of a legal suit provision reversal of RM250.8mil a year ago.
Q4 FY17 financial results
MISC said in the fourth quarter, its earnings fell to RM68.20mil from RM529.80mil a year ago due an impairment loss of RM553.90mil.
Its operating profit was RM627mil, down 5.9% from RM666.5mil.
Its revenue slipped to RM2.434bil from RM2.517bil. Earnings per share were 1.50 sen compared with 11.90 sen.