KUALA LUMPUR: MISC Bhd's net profit rose 19 per cent to RM540.9 million in the second quarter of financial year 2024 (2Q 2024) from RM452.9 million a year ago.
This was driven by operating profit in the marine and heavy engineering segment due to additional cost provisions recognised in the comparative quarter and cost recovery claims, according to a filing with Bursa Malaysia.
MISC's petroleum and product shipping segment also contributed a higher operating profit, benefiting from higher margins.
Group revenue, however, was lower by 6.0 per cent at RM3.33 billion versus RM3.55 billion last year.
This was mainly owing to lower revenue from ongoing heavy engineering, coupled with lower earning days from contract expiries and lower charter rates in the gas assets and solutions segment.
The group declared an interim dividend of 8.0 sen per share that will be paid on Sept 26.
Culmulatively, MISC posted a net profit of RM1.3 billion and a revenue of RM6.97 billion in the first half of financial year 2024 (1HFY24) to a net profit of RM1.07 billion and revenue of RM6.63 billion last year.
On liquefied natural gas (LNG) market's outlook, MISC said it remains favourable with spot rates expected to increase due to seasonal demand and potential winter restocking.
The company said its gas assets and solutions segment is well-positioned to sustain its stable operating income, supported by its resilient portfolio of long-term charters.
Meanwhile, the overall tanker market outlook remains positive with increasing long-haul exports from the US, Brazil and Guyana and low fleet growth.
"The operating income from the petroleum and product shipping segment is expected to remain stable, backed by its fleet of long-term chartered vessels and potential opportunities to be capitalized in the spot trading market," it said.
As for offshore business segment, the company said the demand for newbuild floating production storage and offloading units (FPSOs) is expected to remain robust in the coming years.
This will be driven by projects in South America, West Africa and the Asia-Pacific region, along with the anticipated steady growth in global oil demand.
"This segment's financial performance will continue to benefit from a reliable revenue stream generated by its existing portfolio of long-term contracts," it added.
For the marine and heavy engineering segment, MISC said upstream capex spending remains attractive to energy majors due to stable oil prices anticipated for the remainder of the year and the focus on ensuring energy security amidst persistent geopolitical risks.