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.

Most Popular

Venture Global reveals LNG fleet details

US LNG exporter Venture Global LNG has revealed more details regarding its fleet of nine owned and three chartered liquefied natural gas carriers.

NFE working on two more FSRU charter deals

US LNG player New Fortress Energy is in advanced talks to charter two more floating and regasification units, according to its management.

Gastrade to restart Alexandroupolis FSRU ops in August

Greece's Gastrade plans to resume Alexandroupolis FSRU operations on August 15 following a technical issue in January this year.

More News Like This

QatarEnergy LNG carrier named in China

China’s Hudong-Zhonghua hosted a naming ceremony for one 174,000-cbm liquefied natural gas (LNG) carrier built as part of the massive QatarEnergy shipbuilding program.

Precious Shipping’s new Malaysian JV targets LNG and LPG carriers

Precious Shipping's new Malaysian joint venture with Emstraits Navigation and Lianson Fleet Group will be looking to acquire liquefied natural gas (LNG), liquefied petroleum gas (LPG), and crude tankers.

Capital sells LNG carrier for scrap

Greece's Capital Gas has sold one steam liquefied natural gas (LNG) carrier for scrap, according to brokers.

MISC expects LNG freight rates to remain soft in 2025

Malaysia’s LNG shipper MISC, a unit of Petronas, expects LNG carrier rates to remain soft this year due to a high number of newbuilds coming into the market, but rates are expected to recover post-2026.