Malaysia’s LNG shipper MISC, a unit of Petronas, said its LNG business logged a rise in both revenue and operating profit in the July-September period.
The shipping firm said its gas assets and solution business, which includes a fleet of LNG and ethane carriers, posted third-quarter revenue of 860.6 million ringgit ($184 million), a rise of 8.9 percent compared to the same period last year.
MISC said revenue rose due to higher charter rates in the current quarter coupled with higher earning days following deliveries of two LNG carriers in the first quarter of 2023.
Revenue also rose compared to 771.8 million ringgit in the prior quarter.
Moreover, MISC’s gas assets and solution business reported an operating profit of 427.9 million ringgit ($91.5 million) in the third quarter.
Operating profit rose by 20.5 percent compared to the same period last year mainly due to higher revenue in the current quarter.
It also rose from 418.6 million ringgit in the second quarter.
MISC is one of the largest operators of LNG carriers and most of them are on long-term charters. It operates a fleet of 31 LNG carriers and two floating storage units.
Overall results down
Looking at the overall quarterly results, MISC’s operating profit 649.9 million ($139 million) in the third quarter dropped by 36.9 percent year-on-year.
MISC attributed this due to a one-off compensation for a contract renegotiation in the corresponding quarter in the petroleum and product shipping segment coupled with lower profit in the offshore business segment.
Group revenue of 3.36 billion ringgit decreased by 6.5 percent mainly due to lower recognition of revenue in the offshore business segment from the conversion of an FPSO following lower project progress in the current quarter, MISC said.
MISC expects LNG earnings to remain “stable”
Spot rates continued to strengthen in the LNG shipping market in the third quarter of 2023, driven by rerouting of shipments through longer routes due to the geopolitical situation, and seasonal demand, according to MISC.
In the near term, prospects “remain positive” backed by growing global LNG demand and additional LNG infrastructure investments which further supports LNG growth, the shipping firm said.
Based on this, the gas assets and solutions segment will “continue to pursue available growth opportunities while its operating income is expected to remain stable, underwritten by its portfolio of long-term charters,” it said.