MISC NET PROFIT JUMPS TO RM2.12 BLN IN FY2023

KUALA LUMPUR, Feb 27 (Bernama) -- MISC Bhd’s net profit for the financial year ended Dec 31, 2023 jumped to RM2.12 billion from RM1.82 billion registered in the previous year.

Revenue for the year under review rose to RM14.27 billion compared with RM13.87 billion a year earlier.

“Group revenue was 2.9 per cent higher compared to RM13.87 billion mainly contributed by higher revenue from new and ongoing projects in the marine and heavy engineering segment and improved freight rates in the petroleum and product shipping and gas assets and solutions segments,” MISC said in a statement today. 

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The company said the increase in group revenue was, however, offset by lower revenue recognition from the conversion of a floating production storage and offloading unit following lower project progress in the current year.

On prospects, MISC said that for the LNG shipping segment, despite a sharp decline in December 2023 due to a mild winter and European inventory buildup, spot rates remained elevated compared to historical levels. 

“In the near term, softer market conditions are expected due to firm LNG fleet capacity growth. 

“However prospects remain positive driven by Asia's LNG demand and increasing investments in LNG infrastructure. 

“Additionally, tight vessel availability due to stricter environmental regulations requiring lower average vessel speed and retrofit timeouts, and canal disruptions at Suez and Panama will potentially boost LNG tonne-mile demand. 

“Notwithstanding the above, the operating income for the gas assets and solutions segment is anticipated to remain stable, supported by its portfolio of long-term charters,” it said.

-- BERNAMA