Rates drive MISC results

MISC has reported a 52% year-on-year increase in net profit on the back of stronger tanker freight rates.

The Malaysian shipowner saw net income jump to MYR 511.8m ($158.7m) compared to the MYR 336.7m achieved twelve months earlier.

Revenue for the three month period contracted 3.7% to MYR 2.3bn, while costs declined 15% year-on-year to MYR 1.57bn.

MISC’s energy-related business, which includes LNG, petroleum and chemical shipping, reported an operating profit of MYR 450m.

It attributed the improved performance to improved freight rates and higher volumes of lightering activities at its petroleum business.

However, revenue at its chemical shipping arm was lower due to the disposal of two ships during the quarter.

Its other business segment, which covers offshore, heavy engineering and tank terminal business, operating profit was MYR 58.9m.

Looking ahead, the shipowner said the chemical and petrochemical shipping prospects remain challenging amidst an oversupply of tonnage.

“However, long-term contracts in LNG and our offshore business continue to provide stability to the group,” it said.

MISC owns 27 LNG carriers, 22 chemical carriers and 74 tankers including those operated under the banner of subsidiary AET.

The company also has two DP-rated 120,000-dwt shuttle tankers on order at Samsung Heavy Industries for delivery in 2014 and 2015.