KUALA LUMPUR: MISC Bhd
posted a higher bottomline in the second quarter of the financial year due to higher profit in the marine and heavy engineering segment, mainly owing to additional cost provisions recognised in the comparative quarter and cost recovery claims.
In a statement announcing its quarterly result, MISC said the petroleum and product shipping segment also contributed higher operating profit, benefiting from improved margins.
In 2QFY24, the group registered net profit of RM540.9mil as compared to RM452.9mil in 2QFY23. Earnings per share rose to 12.1 sen from 10.1 sen previously.
Revenue was lower at RM3.33bil against RM3.55bil in the year-ago quarter, mainly owing to lower revenue from ongoing projects in the marine and heavy engineering segment, coupled with lower earning days from contract expiries and lower charter rates in the gas assets and solutions segment.
Over the six months period to June 30, 2024, MISC recorded a net profit of RM1.3bil on the back of revenue of RM6.97bil as compared to a net profit of RM1.07bil and revenue of RM6.63bil in 1HFY23.
The group declared an interim dividend of eight sen per share, going ex on Sept 6, 2024, and payable on Sept 26, 2024.
MISC president and group CEO Zahid Osman said the group's performance in the second quarter of 2024 reflects our strategic resilience and adaptability in navigating complex market conditions.
"Despite facing some headwinds, our diversified portfolio and focus on operational excellence have enabled us to achieve commendable results.
"As we progress through the year, we remain dedicated to leveraging growth opportunities across our key segments, ensuring that we continue to deliver sustainable value for our stakeholders while advancing our commitment to a just energy transition," he said.
Moving forward, Zahid said the outlook for the LNG shipping market remains favourable with spot rates expected to increase due to seasonal demand and potential winter restocking.
Consequently, he said the gas assets and solutions segment is well positioned to sustain its stable operating income, supported by its resilient portfolio of long-term charters.
Meanwhile, the overall tanker market outlook remains positive with increasing long-haul exports from the US, Brazil and Guyana and low fleet growth.
"The operating income from the petroleum and product shipping segment is expected to remain stable, backed by its fleet of long-term chartered vessels and potential opportunities to be capitalised in the spot trading market," said Zahid.
He added that the offshore segment will continue to benefit from a reliable revenue stream generated by its existing portfolio of long-term contracts.
For the marine and heavy engineering segment, upstream capex spending remains attractive to energy majors due to stable oil prices anticipated for the remainder of the year and the focus on ensuring energy security amid persistent geopolitical risks.
"In view of increasing demand for low-carbon solutions, the heavy engineering sub-segment also aims to capitalise on new opportunities from both conventional and clean energy sectors," said Zahid.
