KUALA LUMPUR: MISC Bhd
is positive over prospects in the LNG shipping market due to growing global LNG demand and additional LNG infrastructure investments, which further support growth.
Based on this, the gas assets and solutions segment will continue to pursue available growth opportunities while its operating income is expected to remain stable, underwritten by its portfolio of long-term charters, said the maritime services group in a statement.
Meanwhile, the petroleum and product shipping segment is continuing to improve the quality of its secured income and balance sheet through its shuttle tanker business and asset rejuvenation with dual-fueled newbuildings.
As for its offshore business segment, MISC said it will selectively pursue new opportunities in the market and remain focused on executing the project in hand and undertake mitigation measures to minimise cost and schedule pressures.
"The segment’s financial performance will continue to be supported by its existing portfolio of long-term contracts," it said.
Lastly, the group said its marine and heavy engineering segment is expected to see further recovery in upstream capex spending due to higher oil prices.
However, the heavy engineering sub-segment continues to face challenges in the execution of project due to additional cost and schedule impact.
It expects the marine sub-segment's business to remain challenging as vessel owners are likely to defer dry-docking due to anticipated rising energy shipment demand in the Far East and Europe this upcoming winter, creating stiffer competition amongst shipyards.
In the third quarter ended Sept 30, 2023, MISC recorded a net profit of RM430.4mil, falling from RM820.6mil in the year-ago quarter
It said group operating profit for the quarter was RM649.9mil, 36.9% lower than the corresponding quarter's profit of RM1.03bil, mainly due to a one-off compensation for a contract renegotiation in the corresponding quarter in the petroleum and product Shipping segment.
This was coupled with lower profit in the offshore business segment from lower construction gain from the FPSO conversion and additional cost provisions recognised in the current quarter.
Revenue during the quarter under review was RM3.37bil, down from RM3.61bil in the same 2022 quarter.
For the nine-month period to Sept 30, 2023, net profit was RM1.5bil compared to RM1.18bil in 9MFY22 while revenue was RM9.99bil against RM9.69bil in the comparative period.
The group declared an interim dividend of seven sen per share to be paid on Dec 19, 2023, for shareholders on the record of depositors on Dec 7, 2023.
