MISC logs lower profit, LNG revenue climbs

Malaysia’s MISC reported a drop in net profit in the second quarter due to the effects related to the Covid-19 pandemic, but the company’s LNG business keeps rising.

MISC’s 299.5 million ringgit ($71.3 million) net profit declined 25 percent year-on-year.

The shipping giant attributed the decline mainly due to lower revenue in its heavy engineering segment as the Covid-19 pandemic continues to hit the entire industry.

Aside with that, MISC logged a 1.1 percent rise in revenue to 2.16 billion ringgit and an 8 percent increase in operating profit to 522.9 million ringgit

MISC’s brighter side of the business comes from LNG and petroleum shipping and both of the segments logged a rise in earnings.

LNG revenue increased 5.2 percent to 692 million ringgit while petroleum shipping earnings reached 1.09 billion rising 9.8 percent.

In the January-June period, MISC logged a 959.4 million ringgit ($228.6 million) loss. This is mainly related to a 1.05 billion ringgit provision on litigation claims coming from its legal dispute with Sabah Shell Petroleum, a unit of Shell.

Additionally, the group also recorded an impairment loss of 300 million ringgit in the heavy engineering segment’s property, plant and equipment.

MISC not affected by low spot LNG

LNG spot charter rates remain soft as the Covid-19 pandemic continues to dampen demand resulting in cargo cancellations and output cuts by producers.

MISC says this is expected to persist in the coming quarter as the market enters the seasonal low-demand period.

However, this will have “limited impact” on the steady performance of the group’s LNG business segment as the majority of its vessels are under long-term charters, it said.

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

- Advertisements -

Most Popular

Charif Souki steps down as chairman of Tellurian

US LNG firm Tellurian, the developer of the Driftwood LNG export project in Louisiana, said on Friday that its...

QatarEnergy, ExxonMobil expect first LNG from Golden Pass plant in H1 2025

Energy giants QatarEnergy and ExxonMobil are expecting to start LNG production at their Golden Pass LNG export terminal on...

Dynagas FSRU ready to start Stade job

The 174,000-cbm FSRU Transgas Force, owned by Dynagas, has left Germany's Bremerhaven and will now work as an LNG...

More News Like This

Malaysia’s MISC reports higher Q3 LNG earnings

Malaysia’s LNG shipper MISC, a unit of Petronas, said its LNG business logged a rise in both revenue and...

MISC inks deal for Pengerang LNG FSU conversion

Malaysia’s LNG shipper MISC has entered into a deal with a unit of its parent Petronas to convert a...

Shell welcomes AET’s LNG-fueled VLCC to its chartered fleet

LNG giant Shell took delivery of the second of three LNG-powered very large crude carriers it has chartered from...

MISC sells LNG carrier duo to Nissen Kaiun

Malaysia’s LNG shipper MISC, a unit of Petronas, has sold two of its liquefied natural gas carriers to Japan's...