Malaysian MISC Reports Lower Q3 Net Profit

Malaysian shipowner MISC November 13 reported a net profit of ringgit 266.1mn ($64mn) in the three months to September 30 (Q3 2019), down almost 22% year on year owing to higher impairment of assets and finance costs. 

Company’s operating profit of ringgit 376.4mn was, however, higher than the corresponding quarter's profit of ringgit 354.5mn due to the higher margin on freight rates in the petroleum segment as well as higher revenue contribution from the LNG business segment, it said.

MISC’s Q3 revenue of ringgit 2.14bn was 3.7% lower than the corresponding quarter’s revenue of ringgit 2.23bn. “The decrease in group revenue was softened by the uplift in the LNG business segment which was contributed by a higher number of operating vessels in the current quarter following lower drydockings and acquisition of two LNG carriers, each in December 2018 and January 2019,” the company said.

For the nine months to September 30 (9M 2019), MISC’s net profit was higher at ringgit 1.17bn as against ringgit 972.8mn a year ago, while revenue stood at ringgit 6.58bn versus ringgit 6.39bn in 9M 2018, the company said.

Commenting on the near-term outlook of its LNG business, MISC said that a surge in spot rates has raised the expectation that the ground is being laid for a robust winter market. “Tonnage availability remains low and increased US liquefaction capacity is expected to drive spot rates further in the coming months. Nevertheless, the operating income of MISC’s LNG business segment continues to be underwritten by the portfolio of long-term contracts that are in place,” it said.