In addition construction revenue from Floating, Storage and Offloading Vessel Benchamas 2 started to kick in.This was however offset by the lower earning days and freight rates for the Petroleum segment as well as lower revenue from the Heavy Engineering segment as most on-going projects are nearing completion, MISC said in a press release.
Net profit spiked to MYR680.5m from the MYR134.2m in the previous corresponding quarter as the previous period included provisions made in  the offshore segment.
Lower vessel operating costs in the LNG segment also helped to boost profits, raising segment operating profit to MYR402.7m, 70% higher than the corresponding quarter’s profit of MYR237.0m . This was coupled with a 16% rise in revenue to MYR709.2m compared to MYR610.1m previously due to the lease commencement of three new vessels as higher revenue coupled with lower vessel.Petroleum segment revenue was almost flat at MYR1.03bn mainly due to lower earning days and freight rates and resulted in segment losses widening to MYR59.7m from MYR30.7m previously.
The offshore segment did well as revenue rose 51% to MYR399.9m as a positive outcome on the Gumusut-Kakap dispute and revenue from the Benchamas 2 FSO came in. Segment profit spiked more than four-fold to MYR313.2m from the higher resvenues as the reversal of provisions made previously.
The heavy engineering segment saw revenue fall by about a third to MYR215.4m mainly due to a lower backlog as most on-going projects are nearing completion and there was a lower value and number of LNG and tanker repairs.The segment still managed to turn to a profit of MYR16.4m in the current quarter compared to a loss of MYR1.8m in the previous corresponding quarter due to lower losses in the heavy engineering sub-segment following finalisation of completed projects.
For the year-to-date revenue rose 7% to MYR7.60bn although net profit fell to MYR1.91m.
Looking ahead, seasonal demand during the peak winter months ending the year on a firmer note for the petroleum sector while similar increase in demand should see an increase in spot charter rates for the LNG segment MISC said.
"Expectation of a more stable oil price environment will pave the way for a gradual recovery in investments in the global offshore exploration and production space, especially for developments within the Atlantic Basin. Although opportunities may be limited, the current long term contracts in hand will support the financial performance of the group’s offshore business division," MISC concluded.
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