COVID–19 NEWS   Owners of premises in buildings allowed to determine protocol on wearing of face mask at their venue - Johor Exco | Italy greenlights Omicron-adapted COVID-19 booster shots | New COVID-19 cases down 16.9 pct last week | Japan to simplify COVID-19 airport quarantine procedures | EMA endorses Omicron-adapted COVID-19 vaccines | 
BUSINESS

MISC swings to net loss in Q2 On impairment of ships, declares 7 sen dividend

18/08/2022 02:05 PM

KUALA LUMPUR, Aug 18 (Bernama) -- MISC Bhd swung to a net loss of RM19.10 million for the second quarter ended June 30, 2022 (Q2) from a net profit of RM538.80 million in the same period last year.

MISC said the net loss was mainly due to impairment of ships, higher finance costs from borrowings, and a lower share of profit from joint ventures in the current quarter.

According to the company’s filing with Bursa Malaysia today, impairment of non-current assets posted a pre-tax loss of RM309.8 million in Q2 versus a pre-tax loss of RM42 million in the same period last year, and pre-tax loss from finance costs ballooned to RM147.5 million from RM97.9 million previously, while its share of joint ventures slipped into a pre-tax loss of RM10.3 million from a pre-tax profit of RM44.7 million previously.

The international energy-related maritime solutions and services provider, however, posted a higher revenue of RM3.21 billion against RM2.35 billion previously, contributed by higher revenue from all segments.

The company also declared a second tax-exempt dividend of seven sen per share, payable on Sept 14, 2022.

For the cumulative six months ended June 30, 2022, MISC saw its net profit narrowed to RM357.30 million from RM968.60 million in the same period last year, while revenue widened to RM6.08 billion from RM4.89 billion previously.

President and group chief executive officer Datuk Yee Yang Chien said it is unfortunate that the overall Q2 performance had been negatively impacted by accounting impairment of some of the company’s older liquefied natural gas (LNG) carriers, as well as adjustments made to the finance lease accounting for its ongoing Mero 3 floating production storage and offloading (FPSO) project that is presently under execution.

“Moving forward, we remain focused on ensuring the successful execution of our ongoing projects and consistently delivering our solutions safely, efficiently and reliably to support the needs of the global maritime ecosystem,” he said.

According to the group, the outlook for the LNG shipping market remained positive due to strong global demand for LNG, especially from Europe as a result of the push toward energy security.

It said demand for FPSOs is expected to stay firm with increasing project awards expected over the next few years, as the upstream oil and gas sector continues to remain optimistic, backed by the combination of high oil prices, improved global oil demand and increased capital expenditure spending.

However, it noted that the petroleum shipping market rates for very large crude carriers (VLCCs) remained weak due to the easing of premiums in Russian cargoes and lower oil supply due to production disruptions in some countries.

“The marine and heavy engineering segment remains cautiously optimistic on the outlook due to prolonged supply chain disruptions and volatile commodity prices, despite continuing high oil prices that will further support higher capital spending by energy majors,” it said.

-- BERNAMA


Bernama is the trusted source of reliable real-time comprehensive and accurate news for both the public and media practitioners. Our news is published at www.bernama.com ; BERNAMA TV on: Astro Channel 502, unifi TV Channel 631, MYTV Channel 121 IFLIX; and Bernama Radio broadcasting locally on FM93.9 in Klang Valley, Johor (FM107.5), Kota Kinabalu (FM107.9) and Kuching (FM100.9).

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2022 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy