KUALA LUMPUR: MISC Bhd
posted a strong set of figures in its third quarter ended Sept 30, 2022, led higher by a turnaround in the petroleum shipping segment even as it navigates a volatile industry environment.
In the quarter under review, the group recorded a net profit of RM820.6mil, which was more than double the net profit of the previous corresponding quarter.
Earnings per share rose to 18.4 sen from nine sen in the comparative quarter.
The group reported revenue of RM3.61bil, up from RM2.69bil in 3Q'FY21.
Following from the performance, the group declared an interim dividend of seven sen per share, bringing its payout so far this year to 21 sen per share.
“MISC continues to demonstrate resilience and delivered a healthy third quarter financial performance amidst the ongoing volatility of the industry.
"Anchored by our proven track record and capabilities, we remain steadfast in executing our ongoing projects with continued discipline and focus,” said president and group CEO Captain Rajalingam Subramaniam.
He added that the group will be steering mid-to-long-term to new business opportunities in support of net-zero ambitions.
Moving forward, Rajalingam said there will be positive near-term prospects for the LNG shipping market amid growing global demand for LNG, underpinned by the European energy crisis and additional LNG infrastructure investment.
"Notwithstanding the market situation, the operating income of the Gas Assets and Solutions segment is expected to remain stable, underwritten by its portfolio of long-term charters" said the group in a statement.
Meanwhile, petroleum tanker rates have improved, supported by rebounding oil production, ongoing recovery from Covid-19 impacts and a shift to longer-haul trade flows arising from the Ukraine invasion.
However, oil supply is expected to be tight due to Opec+ production curbs, capping an increase in freight rates.
"Additionally, downside risks to the demand outlook remains, with a lack of improvement in Chinese oil demand and a slowing global economy.
"Amidst this volatile backdrop, the Petroleum and Product Shipping segment has continued to improve the quality of its income and balance sheet through its shuttle tanker business and asset rejuvenation with greener-fueled newbuildings," said Rajalingam.
On the marine and heavy engineering segment, Rajalingam said the group is cautiously optimistic on the heavy engineering sub-segment in view of prolonged supply chain disruptions and high steel prices.
While the reopening of international borders has contributed to the marine sub-segment's turnaround, soaring global gas prices and robust LNG demand are expected to see vessel owners deferring dry-docking.
For its offshore business segment, Rajalingam said it will remain focused on executing the project on hand, with its financial performance supported by the existing portfolio of long-term contracts.
