MISC’s third-quarter profit drops on lower LNG earnings

Malaysia’s MISC logged a drop in net profit in the third quarter mainly due to lower revenue coming from its LNG and offshore business.

The shipping firm reported a profit of 258.3 million ringgit ($63.2 million), down almost 3 percent year-on-year.

Revenue also declined 4.1 percent to 2.06 billion ringgit ($503.9 million).

Besides LNG and offshore, MISC attributed the decline due to lower revenue in its petroleum segment affected by the Covid-19 pandemic.

LNG revenue dropped 5.7 percent to 613.5 million ringgit while offshore segment earnings reached 215 million declining 17.4 percent.

Furthermore, MISC said LNG revenue decreased mainly because of lower-earning days following dry-dockings and off-hire of certain vessels in the quarter.

The firm is not much affected by the volatility in spot LNG prices as most of its vessels are on long-term charters.

The Malaysian shipping firm owned by energy giant Petronas operates a fleet of 29 LNG carriers and two floating storage units.

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