Malaysia's MISC reports 19% jump in Q2 profit

Malaysian shipping company MISC reported a 19% year/year increase in net profit for the second quarter on August 23, driven by strong operating profit in the marine and heavy engineering segment.

Net profit rose to 540.9mn ringgits ($123mn), compared to 452.9mn ringgits in the same period last year. However, the company’s revenue declined by 6% year/year to 3.3bn ringgits.

Looking ahead, MISC noted a favorable outlook for the LNG shipping market, with spot rates expected to rise due to seasonal demand and potential winter restocking.

The global upstream capital expenditure remains steady amid stable oil prices, which is positive for the offshore business segment, it said. The demand for newbuild floating production storage and offloading units (FPSOs) is expected to stay robust in the coming years, driven by projects in South America, West Africa, and the Asia-Pacific region, along with 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,” MISC stated.

The company did not provide a profit forecast for the full year.