Malaysia: MISC Profit Grows

LNG shipper MISC said its revenue was at RM2,379.4 million in the quarter ended 31 March 2013 was 7.7% higher than the RM2,209.1 million revenue in the corresponding quarter.

The increase in Group revenue was mainly due to higher revenue in Heavy Engineering from higher number of projects, combined with lease commencement of two Floating Storage Units (FSUs) of a LNG regasification project in August 2012. Additionally, higher average freight rates has led to an improvement in Chemical business performance.

However, the market for petroleum shipping remains weak contributing to the decline in Petroleum business revenue.

Group operating profit of RM394.9 million was 43.2% higher than RM275.9 million profit in the corresponding quarter. The increase in profit was largely due to lower operating costs from a smaller fleet of operating vessels, particularly for the Petroleum and Chemical businesses.

Group profit before tax of RM354.7 million was significantly higher than the RM139.4 million profit in the corresponding quarter. Improvement in operating profit and lower vessel impairment were the main causes of the increase in Group profit before tax.

Prospects

Year 2013 is expected to be another challenging year for the shipping industry with weak demand growth, volatile fuel prices and excess shipping capacity. However, long-term contracts in LNG and Offshore businesses continue to provide stability to the Group.

1 Malaysian Ringgit = 0.33 US Dollar

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LNG World News Staff, May 23, 2013; Image: MISC