KUALA LUMPUR: MISC Bhd’s net profit for the third quarter ended Sept 30, 2022 (Q3’22) more than doubled to RM820.6 million from RM401 million a year ago.
Revenue rose by 34.3% to RM3.61 billion versus RM2.69 billion previously.
“MISC’s petroleum and product shipping recorded RM1.27 billion in revenue, which was RM489.3 million higher than the corresponding quarter’s revenue of RM775.9 million, mainly from higher freight rates in the mid-sized tanker segment in the current quarter.
“Our offshore business revenue of RM1.12 billion was 49.4% higher than the corresponding quarter’s revenue of RM749.7 million, mainly from higher recognition of revenue from the conversion of a floating, production, storage and offloading unit (FPSO) following improved project progress in this quarter,” it said in a filing with Bursa Malaysia on Nov 17.
On the outlook, MISC said the petroleum shipping market rates have seen improvements since the last quarter with average tanker rates strengthening supported by rebounding oil production, ongoing recovery from Covid-19 impacts and shifts to longer haul trade flows arising from the Ukraine invasion.
“Amidst this volatile backdrop, the petroleum and product shipping segment has been continuing to improve the quality of its income and balance sheet through its shuttle tanker business and asset rejuvenation with greener-fuelled newbuildings.
Higher oil prices have encouraged the increase in global upstream capital expenditure (Capex) spending as the world economy continued to recover despite impacts of inflation and supply chain disruptions,” it added.
Meanwhile, in a separate statement, president and group CEO Captain Rajalingam Subramaniam said MISC continued to demonstrate resilience and delivered a healthy Q3 financial performance amidst the ongoing volatility of the industry.
“Anchored by our proven track record and capabilities, we remain steadfast in executing our ongoing projects with continued discipline and focus,” he said.
He said the company’s robust financial standing placed it on the progressive path to deliver sustainable value to its stakeholders.
“At the same time, we will be steering our mid to long-term ambitions to pursue new business opportunities as we advance to the net-zero future with greater synergy and collaboration with our stakeholders and partners,” he added. - Bernama