KUALA LUMPUR: MISC Bhd’s net profit eased to RM338.9 million in the third quarter ended Sept 30, 2024 (Q3’24) from RM430.4 million in Q3’3.
Revenue was 11% lower at RM2.96 billion, compared with RM3.37 billion previously, due to lower revenue recognition from the conversion of a floating, production, storage and offloading unit (FPSO) in the offshore business segment as well as lower freight rates and earning days in the petroleum and product shipping segment in the current quarter.
In a filing with Bursa Malaysia, MISC attributed the lower revenue from its offshore business segment to the lower project progress during the quarter.
“The segment recorded an operating loss of RM33.2 million compared to an operating profit of RM58.1 million in 3Q 2023 due to lower construction profit following lower project progress as well as an increase in construction costs of the FPSO,” it said.
Meanwhile, the company said the revenue for the petroleum and product shipping segment dropped due to currency translational loss from the strengthening of the ringgit against the US dollar in the current quarter.
Nonetheless, for the nine months ended Sept 30, 2024 (9M’24), MISC registered a higher net profit of RM1.64 billion versus RM1.5 billion in 9M’23.
However, its revenue decreased to RM9.93 billion compared to RM9.99 billion in 9M’23 due to lower profit in the offshore business from lower construction profit.
“The gas assets and solutions segment also recorded lower profit from lower earning days and charter rates, coupled with higher vessel operating costs,” it said.
MISC declared a third interim dividend of eight sen per share for the financial year ending Dec 31, 2024, with the entitlement date set for Nov 28, and payable on Dec 17.
On prospects, the company said the petroleum and product shipping segment’s operating income is projected to remain steady, underpinned by its fleet of long-term chartered vessels and the potential to capitalise on opportunities in the spot trading market.
“The medium-term outlook for the offshore business segment remains positive, supported by stable oil prices, with projects in South America, West Africa and the Asia-Pacific regions driving demand for newbuild FPSO units,” it said.
Moving forward, its offshore business segment will actively pursue new opportunities in the market while maintaining a strong focus on the timely and efficient completion of existing projects to mitigate potential cost overruns, MISC added. – Bernama
