CIMB says MISC net profit below forecast

Crude tanker freight rates have recovered sharply since 3Q18, as oil production by Opec and Russia have risen significantly since May 2018, ahead of the unilateral US sanctions on Iran.

PETALING JAYA: MISC’s net profit for the nine months ended Sept 30, of US$231mil underperformed at only 62% of CIMB Equities Research’s previous full-year forecast, and 65% of consensus.

It had cut its core earnings per share forecast by lowering liquefied natural gas (LNG) profits to reflect higher dry docking days and operating costs, and increasing MMHE losses.