MISC Profit Grows, Malaysia

MISC said its revenue for the quarter ended 330 September 2013 of RM2,166.2 million was 0.5% higher than the RM2,155.0 million revenue in the corresponding quarter.

QUARTER ON QUARTER

Higher revenue in LNG business and higher freight rates in Chemical business contributed to the increase in Group revenue. However, Heavy Engineering business recorded lower revenue due to lower contribution from projects that are nearing completion. Additionally, Petroleum business also recorded lower revenue from a smaller fleet of operating vessels.

Group operating profit of RM408.2 million was 53.9% higher than the RM265.2 million of operating profit recorded in the corresponding quarter. The increase in operating profit was mainly due to lower operating cost from a smaller fleet of operating vessels, particularly for Petroleum and Chemical businesses. The corresponding quarter’s results also included provision for higher than expected expenses of a conversion project in Heavy Engineering business.

Group profit before tax of RM445.5 million was higher than the RM218.6 million profit in the corresponding quarter mainly due to higher share of profit from recognition of finance lease income for Gumusut-Kakap Floating Production System  project commencing June 2013.

YEAR ON YEAR

Group revenue for the nine months ended 30 September 2013 of RM6,829.9 million was 1.6% higher than the RM6,723.2 million revenue for nine months ended 30 September 2012.

Higher revenue in LNG business and higher freight rates in Chemical business contributed to the increase in Group revenue. However, Heavy Engineering business recorded lower revenue due to lower contribution from projects that are nearing completion. Additionally, Petroleum business also recorded lower revenue from smaller fleet of operating vessels and softer freight rates.

Group operating profit of RM1,147.9 million was 9.8% higher than RM1,045.4 million in the corresponding period. The increase in profit was mainly due to lower operating cost from smaller fleet of operating vessels, particularly for Petroleum and Chemical businesses. The corresponding period’s results also included provision for higher than expected expenses of a conversion project in Heavy Engineering business.

Group profit before tax of RM1,139.8 million was higher than the RM795.9 million recorded in the corresponding period. The increase in profit was mainly due to higher share of profit from joint ventures, especially from commencement of Gumusut-Kakap Floating Production System in June 2013. Additionally, the Group has recorded net impairment reversal of RM23.8 million in the current year compared to an impairment charge of RM181.6 million in the corresponding period.

PROSPECTS

Chemical and Petroleum shipping prospects remain challenging amidst a vessel oversupply market. Long-term contracts in LNG and Offshore businesses continue to provide stability to the Group.

LNG World News Staff, November 08, 2013; Image: MISC

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