MISC net profit down 58.7% in Q2

PETALING JAYA: MISC Bhd’s net profit plunged 58.7% to RM556.5 million for the second quarter ended June 30, 2017 against RM1.35 billion in the previous corresponding period, dragged down by impairment loss on ships, property, plant and equipment as well as the absence of disposal gain.
Revenue dropped 3.8% from RM2.39 billion to RM2.3 billion.
MISC has proposed to declare an interim dividend of 7 sen per share for the quarter under review.
The group said in a filing with the stock exchange that it expects the global oil market rebalancing to continue, impacted by the Opec and non-Opec production cuts, rising drilling activity in the US and uncertainty over Libyan and Nigerian production.
Meanwhile, MISC noted that the liquefied natural gas (LNG) shipping market continues to be affected by newbuild deliveries and expiry of older vessel charters, which have depressed spot rates.
However, the group said it will have limited impact on the LNG segment due to its present portfolio of long-term charters in place.
MISC said the offshore segment will continue to experience stable financial performance due to its long term contracts in hand.
MISC’s first-half net profit fell 35.7% from RM1.92 billion to RM1.23 billion on the back of a 10.5% rise in revenue from RM4.79 billion to RM5.29 billion.
The stock fell 17 sen to close at RM7.33 yesterday on some 1.22 million shares done, giving it a market capitalisation of RM32.72 billion.