MISC posts higher profit
LNG shipper MISC of Malaysia reported revenue for the financial year ended 31 December 2014 of RM9,296.3 million, up 3.6% compared to a year before.
The increase in the company’s revenue was primarily from improved freight rates in petroleum business, commencement of finance lease of FPSO Cendor in the current year and higher earning days in LNG business, MISC said in a statement.
However, a smaller fleet of operating vessels in chemical business and lower revenue recognized by Heavy Engineering in the current year, from different phases of project construction, partially negated the increase in Group revenue.
Group profit before tax of RM2,410.3 million was higher than RM2,231.5 million in the prior year following improvement in operating profit, MISC said.
The financial performance for the company in 2015 will continue to be underpinned by secured recurring income from a portfolio of long term contracts in the LNG shipping and offshore business segments, according to MISC.
Despite the severe drop in global oil prices in the past few months, petroleum shipping segment has found strength from sustained global oil production. Barring any material cutbacks in global oil production, the recent strength in petroleum shipping could be sustained for the year. Market conditions for chemical shipping is expected to be relatively unchanged compared to 2014.
However, it will be a challenging year for the oil and gas services segment such as fabrication and construction, given the reduction in capital and operating expenditures by major oil companies in a low oil price environment. The Group’s Heavy Engineering business will draw on its present order book to sustain profitability during the year in conjunction with other cost management and operational excellence initiatives, the company added.
1 Malaysian ringgit = 0.280568 U.S. dollars