MISC Group has reported an increase in revenue for the quarter ended 31 March 2023 of RM3,07 billion which was RM211.1 million or 7.4% higher than the corresponding quarter’s revenue of RM2.86 billion contributed by improved freight rates in the Petroleum & Product Shipping segment and higher revenue from ongoing projects coupled with higher dry-docking and repair activities in the Marine & Heavy Engineering segment.
The group said the increase was, however, offset by lower revenue recognition from the conversion of a Floating, Production, Storage and Offloading unit in the Offshore Business segment. As for operating profit RM825.5 million was RM308.6
million or 59.7% higher than the corresponding quarter’s profit of RM516.9 million mainly contributed by higher margin on freight rates in the Petroleum & Product Shipping segment coupled with higher profit in the Offshore Business segment.
The Group reported a profit before tax of RM627.6 million, which was RM241.0 million or 62.3% higher compared to the corresponding quarter’s profit before tax of RM386.6 million, mainly due to higher operating profit as mentioned above coupled with a higher share of profit from joint venture entities, despite higher recognition of impairment of non-current assets in the current quarter.
Looking ahead, MISC said in the LNG shipping market, spot rates remained subdued in the first quarter of 2023 as mild winters and ample gas storage inventories in Europe and major Asian countries contributed to the increase in tonnage availability. As a result of the subdued spot rates, there is a rising preference by charterers to lock in charters at fixed-time charter rates due to the uncertainty in the market. While prospects remain promising as demand is showing signs of recovery, limited supply growth will keep the supply and demand balance tight through 2023.
