Malaysian LNG shipper, MISC reported a 9.3 percent rise in LNG revenue in the first quarter of FY2017, reaching RM746.5 million (US$172 million) from RM683 million in the corresponding quarter last year.
The company said in its report that the rise in LNG revenue was due to the lease start of its two new vessels.
However, the operating LNG revenue plunged 55.9 percent to RM330 million from the corresponding quarter’s profit of RM747.8 million, mainly due to the recognition of compensation for early termination of time charter contract for two vessels during the corresponding quarter.
The lease commencement of the newly delivered LNG vessels in the current quarter impacted the group revenue that reached RM2.9 billion, 18.6 percent higher from the previous quarter.
MISC said the vessel oversupply is expected to persist in the LNG shipping market as heavy delivery of new LNG vessels continue into 2017.
LNG charter rates are expected to remain soft in the near-term as the oversupply situation is also exacerbated by a significant number of older LNG tankers coming off charters.
1 MYR = 0.230534 USD