Malaysian LNG shipper, MISC, on Tuesday, reported a drop in LNG revenue of 13.9 percent to RM610.1 million (US$145.7 million) from RM708.4 million in the third quarter of 2015.
MISC said the drop is mainly attributable to the operation of a smaller fleet of vessels following disposal of two vessels in November 2015 and lower charter rates from new contracts in the current quarter.
The company reported a profit of RM134.16 million (Approx. US$32 million) plunging over 72 percent from the RM483.5 million in the corresponding quarter in 2015.
Group revenue of RM2,29 billion was 8.5 percent lower than the quarter ended 30 September 2015 when MISC reported revenue of RM2,5 billion, according to the company’s quarterly report.
LNG operating profit of RM237.0 million was 35.1 percent lower than the corresponding quarter’s profit of RM365.2 million, mainly from lower revenue and higher depreciation by RM37.4 million from the change in estimated useful life of vessels from January 2016, MISC said.
Reporting on the first nine months period, MISC noted that its LNG revenue dropped 6.4 percent to RM1.92 billion in 2016 from RM2 billion in the corresponding period of 2015.
The operating profit reached RM1.23 billion, 9.2 up on the corresponding period in 2015 when MISC reported a profit of RM1.13 billion. The increase has been attributed to the recognition of compensation received for early termination of time charter contracts for two vessels.
Speaking of the current year prospect, MISC said that the LNG shipping market is currently “overwhelmed by the number of unutilised newbuild deliveries into the market which continues to dampen the long-term and short-term charter markets.”
However, MISC expects its present portfolio of long-term charters to support a “steady financial performance” of its LNG sector.
1 Malaysian Ringgit = 0.238775 USD