PETALING JAYA: Corrections in the spot tanker rates and expectations of a lower oil storage demand in the second half of the year could see MISC Bhd posting weaker earnings in the coming quarters.
MISC posted a strong first-quarter ended March 31,2020 (Q1) set of results, following a surge in petroleum earnings. This is despite the widely expected headline loss due to litigation provisions made following the loss of its Gumusut-Kakap adjudication claim against Sabah Shell. Excluding the Gumusut litigation-related impairments of RM1.98bil, Q1 core net profit was RM828mil, which was a 76% rise year-on-year.