Group revenue for the quarter and the 9-month period ended 30 September 2015 were higher than the corresponding quarter and period ended 30 September 2014.
- Similarly, Group profit before tax for the quarter and 9-month period ended 30 September 2015 were also higher than the corresponding quarter and period ended 30 September 2014.
- Group cash and cash equivalents rose from RM4.8 billion as at 31 December 2014 to RM5.1 billion as at 30 September 2015.
MISC is pleased to announce its financial results for the third quarter ended 30 September 2015 with group revenue for the quarter of RM2, 505.6 million being 14.9% higher than RM2, 180.3 million in the corresponding quarter.
The increase in Group revenue was mainly due to improved freight rates in the Petroleum business. However, a smaller fleet of operating vessels in Chemical business, lower earning days in LNG business and different phases of project construction in Heavy Engineering caused declines in revenue of the respective businesses in the current quarter.
Group operating profit of RM618.9 million was 27.4% higher than the corresponding quarter’s profit of RM485.8 million, mainly from higher revenue in Petroleum coupled with improvement in charter rates in Chemical business. However, LNG business recorded lower operating profit from lower revenue while additional provision for cost to complete an ongoing project caused a decline in Heavy Engineering operating profit.
Group profit before tax of RM519.3 million was higher than the RM510.5 million profit in the corresponding quarter. This is achieved in spite of taking impairment provision of RM232.3 million in the current quarter.
Group revenue for the cumulative 9-months ended 30 September 2015 of RM7, 596.3 million was 8.4% higher than the RM7, 009.5 million revenue for the corresponding 9-month period.
Improved freight rates in Petroleum business, revenue recognised from an EPC project in the current period and finance lease income contribution of an FPSO unit which commenced in September 2014 were the main contributors to the increase in Group revenue. However, a smaller fleet of operating vessels in Chemical business, lower earning days in LNG business and different phases of project construction in Heavy Engineering caused declines in revenue of the respective businesses in the current 9-month period.
Group operating profit of RM1, 754.4 million was 27.8% higher than corresponding period’s profit of RM1, 372.5 million, mainly from higher revenue in Petroleum and Offshore businesses and lower operating costs from operating a smaller fleet of vessels in Chemical business. Meanwhile, LNG business recorded lower operating profit from lower revenue while additional provision for cost to complete an ongoing project caused a decline in Heavy Engineering operating profit.
The Petroleum shipping segment continues to enjoy the benefits of market strength in the first half of 2015 into the third quarter of the year, despite the quarter being a seasonally weaker period. This segment is likely to end the year on an equally strong note given the start of the winter season in the Northern Hemisphere, which is seasonally positive for this segment.
The steady performance of the LNG shipping and Offshore business segments of the past nine months will continue into the last quarter of the year on the back of long term contracts both business segments have in place.
However, the outlook and prospects of the Upstream oil and gas industry is projected to remain poor with the prolonged weakness in oil price. The cutback in exploration and production activities will continue to weigh heavily on the offshore construction activities for the Heavy Engineering segment. On a positive note, the segment’s marine repair business is expected to perform steadily for the rest of the financial year and to a limited extent, cushion the weak performance of offshore construction business.
Operationally, the Group is expected to sustain its financial performance for the past 9 months into the final quarter of the financial year 2015. However, the overall performance for the financial year is still subject to potential accounting impact from impairment tests, if any.
About MISC Berhad
MISC Berhad (MISC), a subsidiary of PETRONAS, was incorporated in 1968 and is one of the world’s leading international energy shipping and maritime conglomerates.
The principal businesses of MISC comprises energy shipping and its related activities, owning and operating offshore floating solutions, marine repair and conversion, engineering and construction works, maritime education and training, as well as owning tank terminals.
Its fleet consists of more than 110 owned and in-chartered LNG, Chemical and Petroleum vessels with additionally 14 offshore floating facilities. The fleet has a combined capacity of 12 million dwt with a tank terminal capacity of approximately 8.7 million cbm.
Aside from its shipping business, maritime education, training & innovation are a priority for the company and its Malaysian Maritime Academy (ALAM) is ranked amongst the top 10% in the world.
Operating a modern, well-diversified fleet and backed by knowledgeable workforce made up of more than 10, 000 employees from all corners of the globe, MISC is committed to impart quality services to our customers, creating value for our stakeholders and contributing to the sustainability of the industry.