MISC announced its financial results for the financial period ended 30 June 2018
MISC has announced its financial results for the financial period ended 30 June 2018.
Group revenue for the 6 months period ended 30 June 2018 of RM4,162.6 million was 21.3% lower than the corresponding 6 months period ended 30 June 2017 revenue of RM5,287.4 million. The decrease in revenue was mainly from the Offshore segment as the corresponding period included a recognition of one time gain for Gumusut-Kakap Semi-Floating Production System (L) Limited’s (“GKL”) arising from the adjudication decision in February 2017 and lower construction revenue for FSO Benchamas 2 in the current period as the construction has been fully completed in May 2018. Group revenue was further dampened by the LNG segment due to lower charter rate for one of its carrier following renewal of its contract. Heavy Engineering segment also recorded lower revenue due to post sail away projects coupled with lower percentage of completion from its newly secured projects as they are still in their early stages whilst Petroleum segment’s revenue was dampened due to lower freight rates.
Group operating profit for the 6 months period ended 30 June 2018 of RM730.4 million was 47.8% lower than the corresponding 6 months period ended 30 June 2017 operating profit of RM1,398.7 million. Petroleum segment recorded operating loss in the current period due to lower freight rates and higher vessel operating costs while Heavy Engineering segment’s further loss was affected by additional costs incurred on conversion works. Additionally, both Offshore and LNG segments also recorded lower operating profit following lower revenue recognized. Furthermore, LNG segment’s lower operating profit was due to recognition of compensation for early termination of a time charter contract for one of its vessel in the corresponding period.
Group profit before tax of RM637.7 million was lower than the corresponding period’s profit before tax of RM1,255.3 million caused by the decrease in Group operating profit as explained above.
MISC’s President/Group Chief Executive Officer, Mr. Yee Yang Chien said “In the face of market conditions that are highly volatile and challenging, the Group continues to record notable developments that reflects our resilience in demonstrating excellent performance operationally, our ability to consistently create value across the Group as well as to leverage on growth opportunities available in the industry. We remain optimistic that our strong presence in the market will continue to sustain our development and provide the impetus to drive us forward.”
