MISC posts 18% jump in Q1 net profit

PETALING JAYA: MISC Bhd’s net profit for the first quarter ended March 31, 2017 rose 18.4% to RM676.2 million from RM571 million in the previous year’s corresponding quarter.
Its revenue for the quarter under review saw an increase of 24.7% to RM2.98 billion from RM2.39 billion in the same quarter of the year before.
In a filing with the stock exchange, MISC said its heavy engineering segment will be increasing initiatives to diversify into the onshore segment to replenish its order book.
“Cost management and resource optimisation remains an ongoing priority. Our existing portfolio of long- term contracts will continue to support the stable financial performance of the offshore business segment,” it said.
The liquefied natural gas (LNG) vessel charter rates are expected to remain soft due to the oversupply of vessels, which is expected to persist, it added.
MISC said the oversupply situation is not only limited to the LNG segment but is also anticipated in the petroleum segment, which is expected to see an excess tonnage.
“The petroleum shipping market faces a similar tonnage oversupply situation, as 2017 will see a considerable amount of newbuild deliveries across the vessel segments outpacing demand growth in the sector. Petroleum tanker charter rates are expected to fluctuate with the seasonal demands and averaging lower than the prior year,”it added.