Malaysian MISC Reports Higher Q1 Revenue

Malaysian shipowner MISC May 24 said its revenue for the three months to March 31 (Q12019) was ringgit 2.27bn ($544mn), up 12.7% year-on-year owing to improved freight rates in the petroleum segment.

Company’s operating profit during Q1 was ringgit 592mn compared with ringgit 383.4mn in the same quarter of previous year. The increase was due to improved freight rates in the petroleum segment as well as additional charter rate for floating storage units in the LNG segment.

Commenting on the outlook for the year, MISC said petroleum tanker earnings are expected to continue to trend downward in the first half of the year on the back of persistent tonnage oversupply, seasonal factors and oil supply cuts.

“While 2019 as a whole is expected to be a better year for the tanker sector than 2018, continued OPEC-led oil production cuts and the end of Iran oil waivers by the US are a concern as these may affect shipping volumes,” it said.

In the LNG shipping segment, spot charter rates have eased off in Q1 2019 on the back of diminishing winter demand and new tonnage delivery, after a historical winter peak towards the end of 2018, MISC said.

“In the second half of 2019, tanker deliveries are expected to slow and new liquefaction capacity will likely help keep rates afloat. Two new LNG carriers have joined MISC’s fleet at the end of 2018 and early 2019, providing a source of income growth for the segment. These additions and the existing portfolio of long term charters that are in place will underwrite a steady performance for MISC’s LNG business for the year,” it said.