PETALING JAYA: MISC Bhd’s net profit for the second quarter ended June 30,2020, slipped 25.1% to RM299.5mil from RM399.8mil in the previous corresponding quarter due mainly to business disruption from Covid-19 lockdown measures and impairments.
Group revenue was RM2.19bil, 1.1% higher than 2Q19 revenue of RM2.16bil due to higher contributions from the petroleum and LNG segments.
The heavy engineering segment weighed on the group’s performance as revenue slumped 44% year-on-year (y-o-y) to RM121.8mil versus RM277mil previously.
Coupled with additional cost provision and high unabsorbed overheads, the segment registered an operating loss of RM100.2mil.
This was owing to the yard shutdown during the movement control order period coupled with global lockdown measures, the maritime logistics company said.
The segment also saw an impairment loss on ships and other assets of RM306mil versus RM51.5mil in the previous corresponding quarter.
“The impairment loss was recognised in light of the current oil and gas downturn, Covid-19 pandemic and the expected prolonged recovery of the industry, ” said MISC in a statement yesterday.
Meanwhile, the group also recorded an operating loss of RM65.5mil as compared to a profit of RM1.3mil in the year-ago quarter from lower interest income, net foreign exchange loss and unallocated corporate expenses.
“We recorded a stable performance contributed largely by the LNG and petroleum segments for the second quarter notwithstanding the global harsh blows of the unprecedented Covid-19 pandemic.
“Despite the strenuous market environment, we remained steadfast to our earnings resiliency and will continue to pursue markets which are pivotal to the built up of our sustainable income, ” said MISC president and group CEO Yee Yang Chien.
He added that as the group moves on to the next quarter, it will will continue with the completion of projects and expenditure optimisation across the group.
MISC declared an interim dividend of seven sen per share for the quarter.
Its shares closed one sen lower to RM7.88.
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