MISC says LNG tonnage oversupply to continue in 2018, posts 87.1 pct drop in Q4 profit

Image courtesy of MISC

Malaysia’s MISC, one of the world’s largest LNG shipping companies, said Tuesday it expects tonnage oversupply to continue in the LNG shipping market this year as it posted an 87.1 percent drop in net profit in the fourth quarter.

MISCs net profit plunged to 68.2 million ringgit ($17.3m) for the fourth quarter compared with 529.8 million ringgit in 2016.

Net profit was hit by impairment losses of 553.9 million ringgit on ships, property, plant and equipment, offshore floating asset and other investments, MISC said.

MISC’s revenue was down by 3.3%  to 2.43 billion ringgit. MISC attributed the drop to lower value and number of vessel repairs in its heavy engineering segment and lowe petroleum revenue.

This decrease, however, was mitigated by the lease commencement of two new LNG vessels in January 2017 and August 2017, MISC said.

Looking forward, MISC said the LNG shipping segment “faces an ongoing tonnage oversupply situation and the difficult market will persist in 2018.”

“Lack of short-term positive indicators suggests another challenging year,” it said.

MISC added it would continue to rely on its present portfolio of long-term time charters to provide it the stability of profits and cashflow during the year.

It also expects two additional new LNG carriers to join the company’s fleet in 2018, providing a source of income growth for the segment.

“2017 was a challenging year for the shipping and offshore sectors as growth opportunities were scarce while revenue was under constant pressure from weak freight rates and contract
renegotiation risks,” said MISC’s chief executive Yee Yang Chien.

“However, with a steady rise in oil price over the past 2 years, we are looking forward to better days and a healthier level of activities for the oil and gas markets in anticipation of a potential revival in investment spending for the global energy sector,” he added.

 

Share this article

Follow LNG World News

Posted on February 13, 2018 with tags .

Events>

<< May 2018 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

Singapore International Bunkering Conference and Exhibition (SIBCON)

The 20th edition of the Singapore International Bunkering Conference and Exhibition (SIBCON) will be about inspiring change…

read more >

4th Annual Upstream West Africa Summit 2018

In June 2018, Senegal will play host to the No.1 Annual B2B Upstream Oil & Gas event, which will bring together the senior decision makers from across the prolific West Africa region to discuss the trends and challenges currently facing the Oil and Gas industry.

Since the discovery by Tullow Oil in 2007 of the Jubilee Field in Ghana, the Upstream sector has refocused its efforts to explore similar plays around the entire West and North West African coast. These efforts were rewarded with Cairn Energy’s prolific discovery in 2014 followed by Kosmos’ in 2015. The West Africa region has the industry’s spotlight firmly focused on further unlocking the potential of this largely underexplored region.

Companies that will be looking toward further unlocking the deepwater hydrocarbon potential of West Africa include: PETROSEN, BP, Kosmos Energy, Cairn Energy, FAR, Total E&P, Premier Oil, Shell, Tullow Oil along with the Ministries and key solution providers.

 More info

read more >

The 27th World Gas Conference (WGC 2018)

The 27th World Gas Conference (WGC 2018) will be the largest, most timely and most significant global gas conference and exhibition ever held.

read more >

Oil and Gas 2018

The conference will cover a wide range of topics and allow participants to discuss about the new technologies developed in Petroleum…

read more >